BUSINESS COURSE ASSIGNMENT

FACTORS AFFECTING LOCATION OF A CAR MANUFACTURING

INDUSTRY

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,
petroleum

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 itís 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 itís deep enough, therefore itís 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 Ďcentre of Africaí

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, itís 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