Question

2. If you were going to build a plant overseas, what factors would you take into account when making your location decisions?

1. Availability of raw material and cost of raw material.

2. Availability of labour and skilled labour

3. Cost of labour.

4. Infrastructure of the country

5. Stability in the economy

6. Stability in the countries politics

7. Cost of setting up industry

8. Policy for foreign companies

9. Taxes and other regulations

10. Environmental regulations

Answer 1

All the mentioned factors need to be considered by any firm regarding setting up in foreign locations.

1. Availability of raw material and cost of raw material.

2. Availability of labour and skilled labour

3. Cost of labour.

4. Infrastructure of the country

5. Stability in the economy

6. Stability in the countries politics

7. Cost of setting up industry

8. Policy for foreign companies

9. Taxes and other regulations

10. Environmental regulations

All of these factors are essential because to have knowledge related to all social, political and economic aspect of the foreign country is required before setting up a plant there.