These forces often dictate global location decisions (example: factory location near low cost of

unskilled labor)

Cost of inexpensive and inskilled labor are offset by the increase in other costs associated with
operating facilities in remote location

Inexpensive and skilled labor is drawing an increasing number of companies overseas

Location proximity: When a strategic relationship between a seller and a buyer requies them to have
their supply chains more integrated, this can be accomplished more effiently if they are located close
together

The capital costs of building a new facility often are greater than labor cost. To attract economic
development , many goverments are willing to provide tax breaks or cost-sharing arrangements to
lower the cost of the new facility

TRADE PROTECT MECHANISMS:

Voluntary Export restraint (VER) arise when industries seek protection from competing imports from
particular countries.VERSs are then offered by the exporting country to appease the importing
country and deter it from imposing exp;icit trade barrriers

Fall under the broad cartegory of non-tariff barriers, which are restrictive trade barriers like quotas,
embargoes, sanction levies, and others restrictions.

GOVERNMENT PROCURE MENT POLICIES