Elena Aguilar
MANG-317-02
Dr. Sakchutchawarn
September 3, 2014
CASE STUDY: What is the Importance of a Good Location
Strategy for Companies?
INTRODUCTION
The article “When Cheap Is Not So Cheap” published in The
Economist by BERLIN comments on the current issues firm
face when deciding where to locate their factories to reduce
costs.
One of the most efficient ways to increase the profit of
companies or to achieve business succes is to reduce these
costs. The expenditures firm take into account are not only
the labour ones, but also raw material, energy, and transport.
Since economic and labour policies vary over the time in each
country, production costs 9uctuate. BERLIN states that
“Yesterday’s low-cost location may turn out to be tomorrow’s
money-pit.”
CONTEXT
