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Avtm Topic 7
Avtm Topic 7
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ANALYSIS
LAST YEAR PREVIOUS YEAR
17%
31% 3%
41%
55%
9% 25%
19%
• Climate changes 8
ADVANTAGE
COUNTRY A (EUROPE)
TRANSPORT
9
DISADVANTAGE
COUNTRY A (EUROPE)
High: 120-150 million
POPULATION
GDP per capita: US $21,100
LABOUR
COMMENTS
The government will contribute 30% towards the
cost of a new factory
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ADVANTAGE
COUNTRY B (EUROPE)
Unemployment rate :
Low (3%)
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ADVANTAGE
COUNTRY B (EUROPE)
TRANSPORT COMMENTS
13
GEOGRAPHY
The terrain here has no mountains, few hills, very flat land
ECONOMY
Growth rate: Low (1,9%)
Import tax on cycle components : High (18%)
DISADVANTAGE
TRANSPORT
Two modern seaport, high charges for hadling goods
LABOUR
Not much skills labour available
Wage rate 14
COUNTRY C (ASIA)
POPULATION ECONOMY
Population:110 million Growth rate (last year): 8.9%
GDP per capita: US$3,800 Unemployment rate: 6.9%
ADVANTAGE
TRANSPORT
• Good transport around the main seaports
• Small airport but well-managed
• Road network needs a lot of investment
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COUNTRY C (ASIA)
ADVANTAGE
LABOUR COMMENTS
Plenty of skilled labour available About 70% of the population in
Wage rates: low but rising fast major cities are under the age of 30
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DISADVANTAGE
ECONOMY
TAXES
Business tax on annual profits:15%
Import tax on cycle components
COMMENTS
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COUNTRY D (ASIA)
GEOGRAPHY
Having a lot of mountains, hills, flatlands,..
TRANSPORT
Government has a five-year programme to improve transport ADVANTAGE
system
TAXES
COMMENTS
ADVANTAGE
Profits are tax free for the first three year after a factory has
been built
LABOUR
Unions in cycle industry
Wage rates: Average
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DISADVANTAGE
POPULATION
High: 262 million
GDP per capita: US $3,580 (GDP: 3,580$)
ECONOMY
Inflation rate: 8,7%
Growth rate: 4,6%
Interest rate: 8-12%
TRANSPORT
• Several modern, well-run airports; low rates for handling cargo
• Road and rail network needs investment
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DISADVANTAGE
LABOUR
Large supply of unskilled workers who are used
to working long hours.
COMMENTS
• A lot of paperwork is required for new businesses.
• There are serious prolems with air and water pollution.
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THE FOUR COUNTRY AND RANK THEM IN ORDER OF SUITABILITY AS
A LOCATION
B. EUROPE
A. EUROPE C. ASIA D. ASIA
Has a fully integrated
Import tax on cycle road and retail Growth rate (last Interest rate: 8-12%
components : 8% network. year): 8,9% Business tax on
The government will International airport Good transport annual profits: 28%
cost contribute 30% Around the main Several modern,
toward the of a new Two modern
seaports: high seaports mall but well-run airports
factory. well-managed
charges for handing Low rate for handing
goods cargo 22
DECISION
GDP per capita of 3.800, GDP
per capita is quite high
Geography with several
mountains, in the northern area
The middle-age population is
COUNTRY C (ASIA) very much around 10-25 years
It easy for companies to import
goods and export goods
The company can obtain labour
easily and skillfully.
Wage rates: low but rising fast 23
The population of
Africa and Europe is
already of 120-150 In the area (India and Reduce the use the
ADVANTAGE million use of cycle Kenya) labor is meet pollutant emission of
are convenient a solution to accident the transport
because is a
solution traffic
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THE ADVANTAGES AND DISADVANTAGES WHEN AN EXPANDING
BUSINESS WANTS TO BEGINPRODUCTION OUTSITE JAPAN
ADVANTAGE DISAVANTAGE
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