Why do you think this may be?

Read through and highlight key points… http://news.sky.com/story/1012958/jaguar-land-rover-launches-china-expansion "It seems only fitting that this new venture will take place here, in the People's Republic of China, the world's fastest-growing market for premium vehicles.“ "The facility here in China will include research and development, engine plants and production lines. Start to finish, the cars will be made in China," Ms Francis added. China has become Jaguar Land Rover's largest market and experts say it has not even begun to reach its potential. Sales of the company's cars reached 53,000 there in the first nine months of this year - that's up 80 per cent from the year before. The reason behind the boost is China's demand for luxury goods. Jaguar Land Rover has sold 20,000 Range Rover Evoques this year alone. The firm hopes to boost last year's record £1.5bn profits when the new Chinese factory begins work. Building cars in China rather than importing them from the UK allows the company to avoid massive import duties. Chinese-made vehicles can be sold for less and the hope is that more will be bought. Jaguar Land Rover says that as well as building cars identical to those built in the UK, it plans to build a new vehicle designed specifically for the Chinese market.  "We may also build a brand of car that is a blend of the two: a car that is new and designed and developed entirely in China," Ms Francis said. "Having Chinese research and development means we can tailor cars for Chinese tastes." British brands are very popular in China. Combine that with the fact that China has an increasingly wealthy urban population and there are significant opportunities which could help strengthen the UK economy.

Assessment of a country as a production location a) Factors to consider: o costs of production o skills and availability of labour force o infrastructure o location in trade bloc o government incentives o ease of doing business o political stability o natural resources o likely return on investment

First task….what do these words mean?! costs of production skills and availability of labour force infrastructure location in trade bloc government incentives ease of doing business political stability natural resources likely return on investment

Costs of production

Skills and availability of labour force

Infrastructure

Location in trade bloc

Government incentives

Ease of doing business

Political stability

Natural resources

Likely return on investment

The Chinese firms opening factories in India Read through the following article and identify why manufacturers are moving to India using the factors we have just studied http://www.bbc.co.uk/news/ business-34580581

Top 10 best countries for a production location, 2014 Malaysia Taiwan South Korea Thailand China Canada Russia Indonesia United States Mexico Any ideas on why these are ranked in this order?

RESEARCH: WHY IS THIS THE CASE?

NEW WING FOOTWEAR Frank Leung owns New Wing Footwear which is a manufacturer of women’s footwear. It was originally based in South China, but the wages were rising and profit margins were being squeezed. He is looking at two possible production locations. In your groups I would like you to build a case for both locations and to choose the most suitable location in your opinion and justify why. The two locations are Bangladesh or Addis Ababa (Ethiopia)