assessment of a country as a production location

Cost of production

Business look for procuring due to lower costs including labour,raw materials and land

Skill and availability of labour force

Must ensure that tthe workforce still posses the relevant skills otherwise can damage reputation due to bad quality - lowers price value of product

Could increase price- if doesn’t have the correct skills the business may need to invest heavily into training

Will depend on education levels and systems and the specialisation of the country

Infrastructure

In developing= often poor making it difficult to establish [production facilities

Communication infacstrucuture- enables efficient coordination,reduces delays and supports smooth business operations

Physical- enables the efficiently of delivery or raw materials and product, e.g roads

Location in trade bloc

Setting up in a trade bloc allows a business to bypass trade barriers for the products manufactured there

Level of goverment incentives

Governments aim to attract FDI so they may offer incentives such as tax breaks or grants

Ease of doing business

Influenced by regulations and taxation impacts a co pants costs and operational efficiency

Clear regulation,fair tax scheme - makes it easier, reduce delays,minimises compliant costs

Political stability

Reduces risks by providing a predictable business enviroment for company to operate in

Provides business with confidence in the long term, reduces overall risk, helping operate smoothly

Natural resources

May want to locate near their key resources to reduce transportation costs and ensure a reliable supply

Likely return on investment

Business will assess production location by measuring ROI,considerings investment appraisals