Podcast
Questions and Answers
Why is a reliable power system an important infrastructural consideration for businesses when deciding on a production location?
Why is a reliable power system an important infrastructural consideration for businesses when deciding on a production location?
Unreliable power systems can lead to production disruptions, increased costs due to downtime, and potential damage to equipment, affecting overall efficiency and profitability.
Explain how a country's transport infrastructure influences a business's decision to locate production facilities there.
Explain how a country's transport infrastructure influences a business's decision to locate production facilities there.
Adequate road, rail, sea, and air transport systems are crucial for the efficient import of raw materials and export of finished goods, impacting supply chain management and market access.
What are the key benefits for a business, in terms of trade, when a country is part of a trade bloc?
What are the key benefits for a business, in terms of trade, when a country is part of a trade bloc?
Countries in trade blocs benefit from reduced or eliminated tariffs, streamlined customs procedures, and often, harmonized regulations, which make it easier and cheaper to trade with other member countries.
How might the UK's decision to leave the EU impact businesses that previously used the UK as a base for accessing the EU market?
How might the UK's decision to leave the EU impact businesses that previously used the UK as a base for accessing the EU market?
Why do countries with more trade agreements often receive a higher score in global trade logistics rankings?
Why do countries with more trade agreements often receive a higher score in global trade logistics rankings?
Flashcards
Infrastructure
Infrastructure
Basic systems (e.g., transport, communication, power) needed for a society or business to function.
Transport infrastructure assessment
Transport infrastructure assessment
Evaluating roads, rails, ports and airports to facilitate easy import and export of goods.
Premises infrastructure assessment
Premises infrastructure assessment
Evaluating if there are appropriate factories and warehouses available.
Reliable Power System
Reliable Power System
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Trade Bloc
Trade Bloc
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Study Notes
- Infrastructure refers to the basic physical and organizational structures and facilities required for a society or business to operate effectively. Examples include buildings, roads, and power supplies.
Infrastructure Considerations
- Infrastructure is a key factor when deciding where to locate production within a country.
- Adequate road, rail, sea, and air transport systems are necessary for businesses to efficiently export and import goods.
- Suitable buildings and premises are needed where goods can be manufactured.
- A reliable power system is essential, but power cuts are a daily occurrence in some countries, like Ethiopia.
Infrastructure Rankings
- Global trade logistics rankings can show how countries compare for infrastructure.
- In 2018, Germany ranked 1st, with an infrastructure score of 4.37, followed by Sweden at 4.24 and Japan at 4.25. The United Kingdom ranked 9th with a score of 4.03
Location in a Trade Bloc
- Some businesses may initiate production in another country as an entry point into a trade bloc.
- Honda, Nissan, and Toyota have manufacturing plants in the UK to access the well-developed EU market.
- The EU is the world's largest trading bloc, accounting for approximately 20% of global GDP and involving about 500 million people.
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Description
Explore the crucial role of infrastructure in business location decisions. Learn about transport systems, suitable premises, and reliable power. Discover global infrastructure rankings and trade bloc considerations.
