14 Do you think Autovision should relocate? Justify your answer. [6]

[BASEL Moderator]

Autovision is a private sector business based in Europe. It makes specialist glass for cars and benefits from economies of scale. Quality assurance is important to Autovision. The Operations Director has introduced new technology in recent years which has changed the production process. ‘It was expensive to buy, but we have 20 fewer workers than 3 years ago and can now make many different designs.’Autovision sells 50% of its products in Asia. The Operations Director thinks Autovision should relocate to Asia.

14 Do you think Autovision should relocate? Justify your answer. [6]

Possible KN Points:
• Closer to major market
• Space
• Communication issues
• Changes in demand
• Lower distribution/transport costs
• Avoid tariffs OR quotas / exchange rate issues
• Different legal restrictions e.g. bans, complex documentation
• Cost of setting up
• Access to suitable employees