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Browse: Home / KNOWLEDGE / International

How does an international firm decide where to locate its manufacturing activities?

Justin: How does an international firm decide where to locate its manufacturing activities?
How does an international firm decide where to locate its manufacturing activities? Include in your answer a discussion of country factors, technological factors, and product factors.

Answers and Views:

Answer by Ed Atun
First requirement is to be near your raw materials.

Second is to be near a labor force.

Third is to be in an environment that is friendly to business. Low taxes or helpful city employees.

Fourth is to be near your customers. The cost of the product goes up with transportation.

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