Topic 5.4: Location Analysis Questions

Halvorsen Boats has built its boat hulls in a factory abroad for ten years. It now plans to bring hull building back to its home country. State two disadvantages of reshoring.

What does the term outsourcing describe?

Bloom Garden Centres has handed its accounts and payroll to an accounting firm. Define the term outsourcing.

Kodera, a software firm in Germany, has opened an office in India where 200 of its programmers now work. State two features of offshoring.

Kestrel Bikes used to weld its bicycle frames in a factory abroad. Last year it moved the welding back to its home country. State two advantages of reshoring.

Using the data, calculate the payback period for a relocation investment.

Harlow Bricks makes bricks from clay dug from its own pit next to the works. Each brick weighs about 3 kg. State two reasons why a business may choose to locate close to its supplies of raw materials.

Explain one advantage of outsourcing non-core activities.

Define the term insourcing.

Define the term reshoring.

Ferris Clinic pays a cleaning company $3,200 a month. It could instead employ 2 cleaners of its own at $1,250 a month each, and buy cleaning materials for $300 a month. Calculate the monthly saving if Ferris Clinic insources its cleaning.

Identify the way of reorganizing production shown in each case. (a) A bank moves its call centre from its home country to another country. (b) A school stops using a catering company and employs its own cooks. (c) A toy maker closes its factory abroad and makes its toys in its home country again. (d) A hospital pays a company to run its car park.

Define the term outsourcing.

Define the term relocation in a business context.

Toyvale, a toy company based in Canada, now makes all its toys in its own factory in Vietnam. State two features of offshoring.

The City Museum now pays a security company to guard its galleries instead of employing its own guards. Define the term outsourcing.

Marisol Toys made its wooden toys in another country for twelve years and has just brought production back to its own country. State two advantages of reshoring.

What is relocation in a business context?

Northfield Pharma makes its tablets abroad and will move production to its home country next year. State two advantages of reshoring.

A café owner compares two sites. Site A is expected to sell 180 cups of coffee a day at a rent of $90 a day; Site B 110 cups a day at a rent of $40 a day. Each cup leaves $2.50 after its ingredients. Calculate how much more money a day Site A leaves after rent than Site B.