Global Considerations in Location Planning Quiz

Cultural preferences are important, but local cuisine popularity is not typically a factor in location planning.

Having production facilities in multiple countries can help in reducing transportation costs by distributing production closer to demand centers.

Proximity to major highways is crucial for distribution centers to ensure efficient transportation and logistics operations.

Decentralized production involves setting up facilities near end consumers to minimize lead times and transportation costs.

The Make or Buy decision involves evaluating whether to produce goods internally or outsource production to external suppliers.

Site selection involves choosing the exact location within a country where a facility will be situated.

Fluctuations in currency exchange rates can pose risks to businesses engaged in global operations, impacting profitability and financial stability.

The cluster effect refers to the phenomenon where businesses tend to locate near each other, often driven by shared resources, supply chains, or industry-specific advantages.

Mass customization is a strategy where products are tailored to meet the specific needs and preferences of different market segments, allowing for greater customer satisfaction and market penetration.

Risk assessment in global location planning aims to identify potential risks such as political instability, natural disasters, or supply chain disruptions, and develop strategies to mitigate these risks.

Service-oriented businesses rely heavily on infrastructure quality to deliver services efficiently and effectively.

Access to renewable energy sources is crucial for data centers to minimize environmental impact and ensure sustainable operations.

Locating production facilities in low-cost countries may lead to challenges such as language barriers, cultural differences, and communication issues, impacting operational efficiency and coordination.

Language proficiency of the workforce is crucial for call centers to ensure effective communication with customers, leading to better service quality and customer satisfaction.

Software development companies typically rely more on factors such as talent pool, infrastructure, market access, and regulatory environment rather than raw materials in their location planning.