Firms build facilities in other countries

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Reference no: EM131722457

1. Briefly explain why so many U.S.A. firms build facilities in other countries? Give an example of two such firms and the reason for their locations.

2. Explain why so many foreign firms build facilities here in the U.S.A. Give an example of two such firms and the reason for their locations.

3. List and describe the factors (other than globalization) that affect the "location" decision of a firm.

4. Labor is an important factor in location decisions and strategies. In Cambodia, six laborers earn the equivalent of $3.00 a day and can produce 40 units per day. In China, 10 laborers, each making $2.00 per day, can produce 45 units per day. In Billings, Montana, two laborers, each making $60.00 per day, can make 100 units. Based on labor costs only, which location would be most economical to produce the item?

5. Should low wage rates be used alone to determine location? Justify your answer.

Reference no: EM131722457

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