Exam 11: Global Location Decisions

The following facility location technique uses quantitative and qualitative dimensions and is subject to interpretation and bias by the analyst:

The European Union (EU)created the world's largest free trade area.

Which of the following trade agreements was set up after WWII and originally consisted of six countries?

Which of the following factors serves as a magnet for business clusters?

Examples of regional trade agreements include all of the following EXCEPT:

Briefly define a business cluster.Give a location that exemplifies a real-life example of a business cluster.Describe why it should be considered a business cluster.

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.? $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { SCORES (Maximum 100) }$ FACTOR WEIGHT SITE A SITE B SITE C Labor Cost 0.20 90 65 90 Currency Stability 0.50 80 90 80 Proximity to Market 0.30 80 80 80

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

According to the textbook,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.

According to the text,with increasing globalization the access to global markets and corporate networks makes the role of location less important as a source of competitive advantage.

Consideration of regional trade agreements is critical to the facility location decision process because of their impact on which of the following?:

Which of the following secures the right of employees to decide whether or not to join or financially support a union?

Many multinational corporations are moving their facilities and headquarters out of Taiwan and some Southeast Asian countries in order to take advantage of the proximity to customers.The more attractive customer markets are developing in China.

While the development and proliferation of the Internet and web-based commerce has not completely eliminated the relevancy of facilities location,because of the Internet,the speed of delivery and cost in serving the customer are no longer factors in determining the strategic location of an organization's facilities.

The critical issues in sustainable development are energy consumption/production,air pollution and climate change.

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.? $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { SCORES (Maximum 100) }$ FACTOR WEIGHT SITE A SITE B SITE C Labor Cost 0.30 90 80 80 Currency Stability 0.40 80 85 80 Proximity to Market 0.30 80 80 80

Global location decisions are made to optimize the performance of the supply chain and be consistent with the firm's competitive strategy.

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

If a country is seeking to attract foreign investment in the form of manufacturing related facilities,explain 3 things the government might do to increase the chances of this occurring.

Organizations that primarily compete on speed of delivery,such as FedEx and UPS,utilize which of the following approaches for location determination: