BUSINESS COURSE ASSIGNMENT
FACTORS AFFECTING LOCATION OF A CAR MANUFACTURING
Location: Sao Paulo in Brazil
Sao Paulo is a perfect location for a car manufacturing industry. It is situated on the coast of Brazil, and is near by to local resources.
The many reasons to why I have chosen Sao Paulo and why it is suitable for a car Manufacturing site are:
1. There is good access to large amounts of cheap land
2. There is access to cheap labour; Mexican immigrants and local Brazilians
3. Near natural resources; large iron and steel industry
The Amazon forest which supplies many resources , manganese, nickel, timber, phosphates, platinum, tin, uranium,
4. Good transport links; the Amazon River and the coast of the Atlantic Ocean
5. Good communications; railroads in total are 28,828km, highways in total are 1,448,000km, and 3,031 airports, including inland waterways, pipelines, ports, and merchant marines
6. Near a large market; the US market
7. Near suppliers in the area; who supply rubber, good for cars
And most car manufacturing plants are located in Sao Paulo, and are subsidiaries of major foreign companies.
8. Near an open economy; the USA, so it’s easy to import materials required.
9. Good quality and cheap telecommunications; good system; extensive microwave radio relay facilities; 9.86 million telephones; broadcast stations; Atlantic ocean INTELSAT earth stations and 64 domestic satellite earth stations
10. Government support, the Brazilian government places high taxes on imported vehicles and gives incentives to manufactures who would build them in Brazil.
11. Near a commercial centre
12. Good environment for living conditions, so workers can be close by. Good schools, hospitals, housing, markets, entertainment and good access to facilities
The above reasons show that Sao Paulo in Brazil is a good site to set up a car manufacturing industry, the factors which affect the location of the industry there are very good and attractive to new manufacturing companies.
FACTORS AFFECTING THE LOCATION OF TEXTILE PRODUCER
Location: Lagos, Nigeria
1. Access to cheap labour and skilled labour
2. Access to cheap land
3. Local minerals and resources near by, including gold and oil
4. Located on the coast, with a very large port, import and export easily and cheaply
5. Communication is very good, the port is deep enough to hold very large ships, which carry large heavy containers, they can come right up to the port because it’s deep enough, therefore it’s cheaper and easier to unload cargo and import resources and export the textiles
6. Near by to good transport, near railroads, local roads and highways, airports; international as well as local
7. The area is a very large market itself. Demand is high and consumers are close by, they come into the city and buy stock, and some take it abroad themselves, because it is so easy and cheap to transport
8. Oil is a huge resource, making transport very cheap and easy for consumers and producers
9. Lagos is better then the other areas in Nigeria, because it the main commercial and financial centre of the country, and people are always coming in and out for business, so it is a very good business and trade centre, with a highly skilled labour force
10. Good access to many links to the rest of Africa and the rest of the world. Near by to the North west of Nigeria, which commercially is considered as the ‘centre of Africa’
11. Textiles is a very large and successful industry in Nigeria, there is a small area in Lagos where they sell textiles and on average make around 1 billion nairas a day, which is equivalent to around $100 million
12. Near a large international financial centre, it’s easy to get loans and set up the business
13. The government can be very supportive, licences are easy to obtain and foreign companies are treated as local producers, as long as money is available, anything is possible
14. There is political and economic stability
15. There is a nice environment to live in, good international schools, hospitals, many international restaurants, good entertainment, good housing and good access to facilities
16. English is spoken as the first language
17. Telecommunications are very good and improving, there are mobile phones and soon a GSM network, satellite stations, computer networks, emails, faxes, Internet and radio stations
18. The country is fully equipped since the British colonisation, since it was them who helped develop the country
From the above factors, we can see how good and convenient of a location Lagos, Nigeria is to set up a textile manufacturing industry.
It would easy and relatively cheap, with many advantages and links and accesses to the rest of the world. I believe a producer would benefit greatly from setting up a textile industry in Lagos, Nigeria, and would make great profit, gains would be much higher than losses.
FACTORS AFFECTING THE LOCATION OF A TOURIST HOTEL
LOCATION: Beirut, Lebanon
Lebanon is a country recently recovering from 15 years of civil war. Before the war Lebanon was one of the most popular tourist areas in the world. Now recovering and redeveloping, it has many opportunities for new industries to establish there. I shall point out some of the factors which affect the location of industries there and why a tourist hotel would be ideal to be built in Beirut, Lebanon.
1. Accesses to cheap labour, wages are relatively low
2. Access to skilled and higher educated labour force
3. Flexible labour force, people are willing to work shifts and specialise at different tasks. Some Lebanese people have two to three different jobs and work at each one different times of the day and the week.
4. Access to tourist attraction land, Beirut stretches along the coast of Lebanon, and therefore many hotels are located along the beach.
5. Land is not very cheap, but reasonable with licensed permits to build up and across, making it worthwhile
6. The market is excellent for tourism, Lebanon is full of attractive tourism sites, with sandy beaches and a half hour drive away skiing mountains, as well as old monuments and other tourist attractions around Lebanon, which only are minutes away. There is a great deal of entertainment, shopping, restaurants, and centres, theatres, cinemas and clubs, only minutes away from the beach and hotels.
7. Being on the coast, Beirut is ideal for a tourist hotel, importing and exporting resources is easy and cheap.
8. Near good transport network, there is a port, the airport is 15 minutes away, and roads are good, wide and developed and transport is cheap, because petrol is cheap.
9. Good quality telecommunications, telephones, a large use of mobiles with a GSM network, faxes, emails, internet, computer networks and satellite communications, radio stations from all over the world
10. Near the government, easy to get contracts and licenses
11. Low tax economy
12. English and French is widely spoken
13. Hotels are very busy and always full, demand is high for them, especially since tourism is increasing now in Lebanon
14. High technology is available. Hotels are fully equipped and exclusive.
15. Many facilities available for tourists, everything is close by and easy and cheap to reach
16. Beirut is the main commercial and financial centre in Lebanon
17. Near an international financial centre, easy to get loans
18. Great environment to live in, many amenities, very good schools and universities, top quality hospitals, new and developed housing, many facilities; gyms, health clubs, night clubs, restaurants, cafes, shopping centres, cinemas, sport stadiums and much more.
19. It is a very safe city, as in crime is very low, and the army is around the country acting as a defence and legal force, as well as the police.
20. Beirut already has many great hotels doing very well, the Marriott is one example which has opened with a great centre inside, full of shopping, health clubs, pools and cinemas.
So I believe it would be great to build a tourist hotel in Beirut, Lebanon. the locations are ideal, on the beach and near by to everything else. It wouldn’t be difficult to set up and would be very rewarding.
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