Global Hot Spots East Asia. The Pacific Basin, including Japan, South Korea, China, Taiwan, and Singapore became the fastest-growing and foremost trading region in the world. Japan South Korea Taiwan Singapore Hong Kong Figure 9.1

Mexico. Thousands of plants have been built by firms across the world in the maquiladoras on Mexico's northern boarder. Figure 9.1 U.S. Sunbelt. The sunbelt is attracting many firms normally entrenched in the industrial heartland of the United States owing to lower labor costs, less unionism, and a more-attractive climate. NAFTA. The North American Free Trade Agreement makes trade easier between Canada, Mexico, and the United States. Other Latin American countries may follow suit.

Europe. The European Union (EU) encompasses 15 member nations and special arrangements with most other European states. Figure 9.1

Former Communist Countries. The population of 410 million promises huge market opportunities and attractive possibilities for joint ventures. Figure 9.1 Russia

Managing Global Operations  Other Languages  Different Norms and Customs  Workforce Management  Unfamiliar Laws and Regulations  Unexpected Cost Mix

Location Decisions - Manufacturing  Favorable Labor Climate  Proximity to Markets  Quality of Life  Proximity to Suppliers  Proximity to Parent Company  Utilities, Taxes, and Real Estate Costs

Location Decisions - Services  Proximity to Customers  Transportation Costs and Proximity to Markets  Location of Competitors  Site-Specific Factors

North Erie Pittsburgh Harrisburg Philadelphia Scranton Uniontown State College Location Location FactorWeightScore Total patient miles per month254 Facility utilization203 Average time per emergency trip203 Expressway accessibility154 Land and construction costs101 Employee preference105 WS=(25 x 4) + (20 x 3) + (20 x 3) + (15 x 4) + (10 x 1) + (10 x 5) WS=340

Location Erie A (50, 185) Pittsburgh Harrisburg Philadelphia Scranton Uniontown North y (miles) x (miles) East State College B (175, 100)

Euclidean distance d AB = ( x A – x B ) 2 + ( y A – y B ) 2 Location d AB = (50 – 175 ) 2 + (185 – 100 ) 2 d AB = miles

Rectilinear distance d AB = | x A – x B | + | y A – y B | Location d AB = | 50 – 175 | + | 185 – 100 | d AB = 210 miles

Enter the x and y coordinates of the two towns. xy Erie (Point A)50185 State College (Point B) To find the Euclidian distance, subtract the second town’s x value from that of the first town, and square the result. Do the same with the two y values. Then add the two and compute the square root. (Erie x – State College x) Euclidian distance (Erie y – State College y) 2 7,225 To find the rectilinear distance, get the absolute value of the result of subtracting the second town’s x from the first town’s. Do the same with y. Then add the absolute distances together. (Erie x – State College x)125Rectilinear distance210 (Erie y – State College y)85 Tutor Distance Measures Using OM Explorer

Location (a) Locate at C (5.5, 4.5) Census PopulationDistance Tract(x, y)(l)(d)ld A(2.5, 4.5) = 36 E(8, 5) = 330 North B A C E G F D (2.5, 4.5) [2] (2.5, 2.5) [5] (5, 2) [7] (7, 2) [20] (9, 2.5) [14] (8, 5) [10] (5.5, 4.5) [10] x (miles) East y (miles)

Location (a) Locate at C (5.5, 4.5) North B A C E G F D (2.5, 4.5) [2] (2.5, 2.5) [5] (5, 2) [7] (7, 2) [20] (9, 2.5) [14] (8, 5) [10] (5.5, 4.5) [10] x (miles) East y (miles) Tractld A6 B25 C0 D21 E30 F80 G77 Total239

Location (b) Locate at F (7, 2) North B A C E G F D (2.5, 4.5) [2] (2.5, 2.5) [5] (5, 2) [7] (7, 2) [20] (9, 2.5) [14] (8, 5) [10] (5.5, 4.5) [10] x (miles) East Tractld A14 B25 C40 D14 E40 F0 G35 Total168

Location Alternative Locations North x (miles) East y (miles)

Location Center of Gravity Approach North B A C E G F D (2.5, 4.5) [2] (2.5, 2.5) [5] (5, 2) [7] (7, 2) [20] (9, 2.5) [14] (8, 5) [10] (5.5, 4.5) [10] x (miles) East y (miles) Census Population Tract(x, y)(l)lxly A(2.5, 4.5)259 B(2.5, 2.5) C(5.5, 4.5) D(5, 2)73514 E(8, 5) F(7, 2) G(9, 2.5) Totals Totals

Location Center of Gravity Approach x * = y * = x * = 6.67 y * = 3.02

Location Center of Gravity Approach