chapter8solutions

chapter8solutions - CHAPTER 8 DISCUSSION QUESTIONS 5....

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CHAPTER 8 DISCUSSION QUESTIONS 5. Service location decisions tend to focus on the revenue function, whereas manufacturing/industrial location decisions tend to focus on costs. The service sector uses techniques such as: n Correlation analysis n Traffic counts n Demographic analysis n Purchasing power analysis The industrial decision uses: n Transportation method n Factor-weighting approach n Break-even analysis n Crossover charts 8. Factors to consider when choosing a country : n Exchange rates n Government stability n Communications systems within the country and to the home office n Wage rates n Productivity n Transportation costs n Language n Tariffs n Taxes n Attitude towards foreign investors/incentives n Legal system n Ethical standards n Cultural issues n Supplies availability n Market locations 9. Factors to consider in a region/community decision: n Corporate desires n Attractiveness of region n Labor issue n Utilities n Environmental regulations n Incentives n Proximity to raw materials/customers n Land/construction costs 10. Site location factors : n Size and cost n Transportation systems n Zoning n Proximity of services/supplies needed n Environmental impact Chapter 8: Location Strategies 1
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END-OF-CHAPTER PROBLEMS 8.1 (a) Six laborers each making $3 per day can produce 40 units. (b) Eight laborers each making $2.50 per day, can produce 45 units. (c) Two laborers, each making $64 per day, can make 100 units. a Malaysia unit b China unit c Montana unit ( 29 ( 29 ( 29 = × = = × = = × = 6 40 0 45 8 50 45 0 44 2 100 28 $3 $ . $2. $ . $64 $1. China is most economical, assuming transportation costs are not included. 8.2
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chapter8solutions - CHAPTER 8 DISCUSSION QUESTIONS 5....

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