Global Business Today 6th Edition by Charles Hill

Exercise 11

A chemical firm is considering how best to supply the world market for sulfuric acid.A manufacturing plant costs approximately $20 million to construct and requires a moderately skilled work force.The total value of the world market for this product over the new 10 years is estimated to be between $20 and $30 billion.The tariffs prevailing in this industry are moderate.Should the firm favor concentrated manufacturing or decentralized manufacturing? What kind of location(s)should the firm seek for its plant(s)