Political Stability PDF

Political stability Syria – could you set up production here? Research: Political stability Political stability will have a bearing on the business community as they will be unable to move production to a location that is at war They may risk losing factory, supplies, resources or ev...

Political stability Syria – could you set up production here? Research: Political stability Political stability will have a bearing on the business community as they will be unable to move production to a location that is at war They may risk losing factory, supplies, resources or even employees in a war zone Search for your countries and the highest political stability is the most attractive production location Natural resources Natural resources A business may need to set up production in another country because the raw materials that they need do not naturally occur in the UK The business could decide to import cocoa beans, coffee beans, rice or pineapples, but perhaps it will be cheaper to move the production location to the country of origin BBC article HERE Research: Natural resources Take a look at this list of countries and the natural resources on the right Remember you are trying to decide where to locate: The business may need raw materials from that country If the business does not locate there they may have to import which could be expensive This will push up the costs of production The more natural resources will mean a higher This will reduce the profits score on your table Likely return on investment Research: Likely return on investment To decide how you will rank your countries in this final category, you may need to carry out more research, have a discussion and come to a judgement decision. If a business sets up production in another country this is expensive, for example: 1. Moving factory 2. Setting up new production 3. Buying machinery 4. Hiring staff 5. Moving operations such as HR 6. Hiring key staff such as managers with local knowledge (language) Investors will need to know that these expenses will be returned with profits