Assessing a Country as a Production Location (Edexcel A-Level Business): Flashcards

Labour, energy, raw materials, land

£3/hr vs £9/hr; 30% reduction

25% (one-quarter) of European prices

Moving production back from Far East to West

Avoid tariffs & quotas; tariff-free access to members

Initial investment ÷ Annual cash savings

((Net return ÷ Total cash flow) ÷ Years) × 100%

Future cash flows worth less than current (time value of money)

Costs 40%, Risks 20%, Conditions 40%

20%, lowest in G20