09 Identify and explain two factors (other than taxes) that Kasper Construction should consider before..............[6]

[BASEL Moderator]

The Government in country Y wants to encourage more secondary sector business activity to help reduce unemployment. It has announced a reduction in taxes and plans to remove some legal controls over business activity. Kasper Construction is a multinational company based in country X which wants to expand. It plans to build a brick-making factory in country Y if it can find a suitable location. Some pressure groups are against this plan as Kasper Construction has a bad reputation for environmental damage.

09 Identify and explain two factors (other than taxes) that Kasper Construction should consider before making
a location decision. [6]

Possible KN Points:
• Access to raw materials
• Close to customers
• Land issues e.g. Availability/cost of suitable land
• Labour issues e.g. Cost/access to suitable workers
• Government e.g. Assistance, quotas, regulations
• Competitors
• Transport links
• Lack of local knowledge/cultural issues
• Language problems
• Infrastructure e.g. Utilities, communications