COMMERCE 2OC3 Chapter Notes - Chapter 8: The Technique, Variable Cost

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 2OC3
• Professor: Fouzia Baki

Document Summary

Location options include 1) expanding an existing facility instead of moving, 2) maintaining current sites while adding another facility elsewhere, or 3) closing the existing facility and moving to another location. The objective of location strategy is to maximize the benefit of the location of the firm. Factors that affect location decision: market economics, better international communications, more rapid, reliable travel and shipping, ease of capital flow between countries, high differences in labour costs. One approach to select a country is to identify what the parent organization believes are key success factors (ksfs) needed to achieve competitive advantage. Besides globalization, a number of other factors affect the location decision, among these are labour productivity, foreign exchange, culture, changing attitudes toward the industry, and proximity to markets (corruption and association), suppliers, and competitors. Labour productivity (cid:1853)(cid:1854)(cid:1867)(cid:1873)(cid:1870) (cid:1829)(cid:1867)(cid:1871)(cid:1872) (cid:1868)(cid:1857)(cid:1870) (cid:1830)(cid:1853) (cid:1870)(cid:1867)(cid:1856)(cid:1873)(cid:1855)(cid:1872)(cid:1867)(cid:1866) (cid:4666)(cid:1866)(cid:1872)(cid:1871) (cid:1868)(cid:1857)(cid:1870) (cid:1856)(cid:1853)(cid:4667)=(cid:1853)(cid:1854)(cid:1867)(cid:1873)(cid:1870) (cid:1829)(cid:1867)(cid:1871)(cid:1872) (cid:1868)(cid:1857)(cid:1870) (cid:1866)(cid:1872)