4.2.3 Assessment Of A Country As A Production Location Flashcards Preview

Business Theme 4 > 4.2.3 Assessment Of A Country As A Production Location > Flashcards

Flashcards in 4.2.3 Assessment Of A Country As A Production Location Deck (9)
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1
Q

What are the factors making a nation attractive to produce in

A
  • 1 cost of production
  • 2 skill and availability of workforce
  • 3 infrastructure
  • 4 trading bloc
  • 5 ease of doing business
  • 6 government incentives
  • 7 political stability
  • 8 natural resources
  • 9 likely return on investment
2
Q

Explain cost of production as an influencing factor of the attractiveness of a production location

A
  • foreign workers can be paI lower wages
  • the cost of land, offices and utilities may be cheaper abroad
3
Q

Explain skills and availability of workforce as an influencing factor of the attractiveness of a production location

A
  • some businesses need a skilled labour force thats available elsewhere
  • it may also be easy to build a large labour force in areas of high unemployment
4
Q

Explain how trading blocs are an influencing factor of the attractiveness of a production location

A
  • reduces tariff payments on imports And exports
5
Q

Explain how ease of doing business is an influencing factor of the attractiveness of a production location

A
  • may move closer to the market they are trying to distribute to
  • regulations like environmental protection laws can be avoided
  • business must consider the reaction of the people within the country they are moving to
6
Q

Explain how government incentives are an influencing factor of the attractiveness of a production location

A
  • could include, lower corporation tax, loans or grants
  • governments do this to increase FDI as it will provide benefits like increased employment and tax revenue
7
Q

Explain how political stability is an influencing factor of the attractiveness of a production location

A
  • political stability creates uncertainty making planning difficult
  • businesses will avoid country’s with corruption as it can damage the brand image and cost them money
8
Q

Explain how natural resources are an influencing factor of the attractiveness of a production location

A
  • proximity of raw materials, being close reduces delays and costs
  • agricultural firms will move to the best weather conditions
9
Q

Explain how the likelihood of returning on investment is an influencing factor of the attractiveness of a production location

A
  • a business will want a larger long-term saving if they are going to move their production overseas