Factors Influencing the Location of Production

BENEDEK László

Overview

• Availability of Resources
• Infrastructure
• Market Access
• Government Policies and Regulations
• Competition
• Cultural and Social Factors

Availability of Resources

• Raw materials
• Labor
• Energy

Infrastructure

• Transportation
• Communication
• Energy

Market access

• Target customers
• Suppliers

Government policies

• Tax incentives
• Labor laws
• Environmental regulations

Competition

• Nearer?
• Similar resources
• Established markets
• Farther?
• Less competition
• Cheaper labor

Cultural and social factors

• Language
• Customs
• Lifestyles

Conclusion

• Many factors
• Depends on the company’s needs
• Efficiency
• Profits

• Thank you for your attention!