4.3.2.3 ASSESSMENT OF A COUNTRY AS A PRODUCTION LOCATION

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4 Terms

1

What factors are important when considering a country as a production location?

  • costs of production

  • Skills & availability of labour force

  • Infrastructure

  • Location in trade bloc

  • Gov’t incentives

  • Ease of doing business

  • Political stability

  • Natural resources

  • Likely return on investment

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2

Formula for ROCE (Return on Capital Employed)

ROCE = Operating Profit/Capital Employed

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3

Factors for a country as a production location AGAIN

  • costs of production

  • Skills & availability of labour force

  • Infrastructure

  • Location in trade bloc

  • Gov’t incentives

  • Ease of doing business

  • Political stability

  • Natural resources

  • Likely return on investment

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4

ROCE AGAIN

Operating Profit/Capital Employed

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