SOLVED

Section 2Â Â Factors That Affect Location Decisions 1) Lists have been developed that rank countries on issues such as “competitiveness” and “corruption.” 2) The ratio of labor cost per day to productivity, in units per day, is the labor cost per unit. 3) For a location decision, labor productivity may be important in isolation, but low wage rates are a more important criterion. 4) Unfavorable exchange rates can offset other savings in a location decision. 5) An example of an intangible cost, as it relates to location decisions, is the quality of education. 6) In location decisions, intangible costs are easier to measure than tangible costs. 7) Location decisions are based on many things, including costs, revenues, incentives, attitudes, and intangibles, but not on ethical considerations. 8) Manufacturers may want to locate close to their customers if the transportation of finished goods is expensive or difficult. 9) One reason for a firm locating near its competitors is the presence of a major resource it needs. 10) Why is Northern Mexico used as a cluster for electronics firms? A) high traffic flows B) venture capitalists located nearby C) natural resources of land and climate D) NAFTA E) high per capita GDP