Location Stretgy

Industrial location analysis typically attempts to

• minimize costs

• maximize sales

• focus more on human resources

• avoid countries with strict environmental regulations

Which of the following statements regarding the center-of-gravity method is false?

• It is designed to minimize the maximum possible travel distance to any location.

• The optimal x- and y-coordinates are calculated separately.

• The optimal solution is unconstrained, so it could suggest a location in the middle of a body of water.

• The weights used are the quantity of goods moved to or from each location.

Why is Northern Mexico used as a cluster for electronics firms?

• high traffic flows

• venture capitalists located nearby

• natural resources of land and climate

• NAFTA

Among the following choices, an operations manager might best evaluate political risk of a country by looking at which type of country ranking?

• based on competitiveness

• based on cost of doing business

• based on corruption

• based on average duration between presidential/prime minister elections

__________ and  __________ are to key country success factors as __________ and __________ are to key region success factors.

• Cultural issues, location of markets; site size and cost, zoning restrictions

• Exchange rates, labor availability; site size and cost, environmental impact

• Labor cost, currency risk; land costs, proximity to customers

• Land costs, proximity to customers; labor cost, air and rail systems

The reason  fast food restaurants often are found in close proximity to each other is

• they enjoy competition

• location clustering near high traffic flows

• low cost

• availability of skilled labor

Governmental attitudes toward issues such as private property, intellectual property, zoning, pollution, and employment stability may change over time.  The term associated with this phenomenon is

• bureaucratic risk

• political risk

• legislative risk

• judicial risk

A location decision for a traditional department store (Macy's) would tend to have a(n)

• cost focus

• labor focus

• revenue focus

• environmental focus

In location planning, environmental regulations, cost and availability of utilities, and taxes are

• global factors

• country factors

• regional/community factors

• site-related factors

When making a location decision at the country level, which of these would be considered?

• corporate desires

• land/construction costs

• air, rail, highway, waterway systems

• location of markets