Exam 11: Global Location Decisions

Choosing to manufacture in China to sell to Chinese customers would likely involve which location decision consideration?

According to the text, which of the following would be an example of Coca-Cola's international bottling plants, each serving a small geographic region?

Two models that utilize quantitative data, which can help determine the attractiveness of one location versus another, are the Break-Even Model and the Extrapolated Average Cost Model.

Suppose a company in the United States was trying to decide whether to locate their manufacturing facility in the United States or in Southeast Asia.Consider the following information in answering the question below: •Presently, this US company, which makes only one type of finished good, sells 40% of their product in the United States, 10% of the product in Mexico, 15% of their product in Canada, and 35% of their product to the rest of the world. •The product this company produces is presently tariffed heavily when imported into the United States. •The product consists of about 150 components of which 75 components are imported from Southeast Asia, 40 components are imported from Mexico, and 35 components come from US suppliers. List four reasons why it would be favorable to locate the new manufacturing facility in the United States rather than in Southeast Asia.

Many multinational corporations are moving their facilities into China to have access to the local markets rather than for export reasons.

The Americas have two primary regional trade agreements, NAFTA, an agreement between the United States, Canada, and Mexico, and COMESA, an agreement between all of the South American countries.

The World Trade Organization (WTO) is critical to the facility location decision process because of their impact on:

Which of the following issues is (are) important to consider when trying to determine the location of a firm's facilities?

A certain organization trying to decide where to locate their future factory is considering three locations.They are taking into account three factors: labor costs, currency stability, and proximity to market.Using the weights for each factor listed below and the scores achieved by each of the three considered locations, determine which location should be chosen for the new facility based on the weighted factory location model.

A list of quality-of-life factors would most likely include proximity to customers, proximity to suppliers, tariff rates, and currency stability.

While many developing countries are attractive to companies seeking out low labor costs, there are other factors such as productivity levels, employee skill and education levels, turnover rates, and employment trends that certain industries find just as important, if not more important, in determining facility locations.

The development of cleaner, more fuel-efficient and affordable energy technologies will have a direct impact on the cost of production of goods and delivery of services.

The following facility location technique uses fixed and variable costs to analyze potential locations:

If a country is seeking to attract foreign investment in the form of manufacturing related facilities, explain three things the government might do to increase the chances of this occurring.

Which of the following strategic foreign facilities is set up in a location with an abundance of advanced suppliers, competitors, research facilities, and knowledge centers to get access to the most current information on materials, components, technologies, and products?

Regional trade agreements assist with which of the following?

Which of the following is NOT a reason for locating in a business cluster?

When an organization is considering future facility locations, provide three human resource related issues that the organization would need to consider.

In the U.S.there is a trend to locate manufacturing facilities in the sunny, incentive-friendly, nonunionized South.

What specific advantages would a Free Trade Zone offer a manufacturing company? Also, under which circumstances would a company utilize a Free Trade Zone?