Assessing a Country as a Production Location Simplified Revision Notes for A-Level Edexcel Business

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4.2.3 Assessing a Country as a Production Location

Cost of production
Skills and availability of labour – Determines how efficient workers are
Government incentives E.G Corporation tax decreases
Ease of doing business
Political stability
Trading bloc – Affects the cost of moving goods, services and labour
Infrastructure – Improved transport links lower logistic costs
Natural resources
Quantitative data

Evaluation

Depends on the production method
Short run and long run
Profit maximisation vs ethics
Expansion abroad could lead to diseconomies of scale
Depends on how reliable the market research is

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