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IGCSE Business Studies           Student CD-ROM



            Reasons for locating operations to another country


                                                                              Lower labour costs



                                                                           Access to global markets



                                                                           To avoid legal barriers and
                                                          Benefits
                                                                                import tariffs

                                                                             Incentives offered by
                                                                            foreign governments to
                                                                             locate in their country

                                                                           Might locate closer to the
                                                                             market which reduces
                             Locating production in                            transport costs
                                another country


                                                                           Communication problems



                                                                              Cultural differences

                                                         Limitations
                                                                               Quality issues




                                                                              Ethical concerns














































            © Cambridge University Press 2014  IGCSE Business Studies                    Section 4 – Mind maps  8
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