Infrastructure - Location and Research Analysis PDF
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King's College
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Summary
This document discusses infrastructure, its importance for businesses, and the factors influencing location decisions. It explores research on global trade logistics and the impact of trade blocs, including examples and questions about specific countries. The resource combines economic concepts with practical business applications.
Full Transcript
Infrastructure Definition: Infrastructure Infrastructure is the basic physical and organisational structures and facilities (e.g. buildings, roads, power supplies) needed for the operation of a society or business. Infrastructure One factor to consider when deciding where to locate produ...
Infrastructure Definition: Infrastructure Infrastructure is the basic physical and organisational structures and facilities (e.g. buildings, roads, power supplies) needed for the operation of a society or business. Infrastructure One factor to consider when deciding where to locate production is the infrastructure of a country A business will need to assess if the country have adequate road, rail, sea and air transport systems so goods can be exported and imported easily The business will also need to know if the country have suitable buildings and premises where the goods could be manufactured The country have a reliable power system e.g. in Ethiopia power cuts are a daily occurrence Research: Infrastructure rankings Have a look at the global trade logistics rankings and compare the UK to the other countries, look for the infrastructure column Location in a trade bloc Research: Location in a trade bloc Some businesses may start production in a country as a way into a trade bloc. For example Honda, Nissan and Toyota all have manufacturing plants in the UK to gain access to the lucrative rich and developed EU market for cars EU is the world’s largest trading bloc, which accounts for some 20% of global GDP and approximately 500 million people. Which trading blocs are South Korea in? Which trading bloc is Mexico in? Click the graphic to search the trade blocs for your countries, Is the UK now in a trading bloc? more trade agreements gives the country a higher score on your table