1. Trinidad or Tobago?
Read the case study on pg. 353 and discuss the following questions:
List and explain 6 reasons for these companies locating in Trinidad.
Do you think that the location decision is a very important one for all businesses?
[15mins + 5mins feedback]

2. Learning Objectives TOPIC: Topic 5: Operations Management
LESSON TITLE: Location
COMPETENCY FOCUS:
Technological Impact (C4): students will develop their understanding of how technology has made an impact in the production process of products for a business.
[IB Learner Profile Development: Inquirer]
Learning Objectives
By the end of the lesson, you should be able to…
LO1) To identify the factors affecting location of production
LO2) To explain the causes of location and relocation
LO3) To analyse the effects of location and relocation- both domestically and internationally.
SMSC: You will assess the organisational culture of businesses in terms of fundamental structure, purpose and strategy development.
CRITICAL THINKING KEY:
Knowledge Application Analysis Evaluation

3. Location
Deciding on the location of the business is often crucial to its success. Optimal Location: a business location that gives the best combination of qualitative and quantitative factors and is the best site for location. New businesses have to decide on where to best locate the business and existing businesses may decide to re-locate or expand.

4. Factors influencing location decisions
QUANTITAIVE FACTORS
Site or other capital costs such as building or shop-fitting
Labour
Transport costs
Sales revenue potential
Government grants
QUALITATIVE FACTORS
Safety
Room for further expansion
Managers’ preferences
Labour supply
Ethical considerations
Environmental concerns
Infrastructure

5. Globalisation (H/L)
Globalisation is the creation of global markets, global businesses and global products.
We are fast becoming a ‘world economy’.
Globalisation means that:
The clothes we buy are made abroad
Call centres are located abroad
We can import best quality bananas from abroad

6. Globalisation Why become a multinational?
Become closer to main markets
Lower costs of production
Lower labour rates
Cheaper rent and site costs
Government grants/incentives
Avoid import restrictions
Access to local natural resources
Exchange rate advantages

7. Globalisation
The problems with globalisation: Watch the video clip and make notes about the problems of globalisation.

8. Globalisation Technology Communication networks Internet access
Integration of economies are made possible by:
Technology
Communication networks
Internet access
Growth of economic cooperation – trading blocs (EU, NAFTA, etc.)
Collapse of ‘communism’
Movement to free trade

9. Globalisation Corporate Expansion:
Multi-national or trans-national corporations (MNCs or TNCs) – businesses with a headquarters in one country but with business operations in a number of others.
Characteristics:
Expanding revenue
Lowering costs
Sourcing raw materials
Controlling key supplies
Control of processing
Global economies of scale

10. Key terms
Research the following key terms & provide your own definitions for each: Multi-national companies Globalisation Free international trade Tariff Quota International Competitiveness Emerging Markets

11. Research Research & make your own notes on the following:
The World Trade Organisation (WTO)
Regional Trade Blocs

12. Exam Practice
Read case study on pg. 443 (Raffo) and respond to the following questions. [40mins]

13. Exam Practice
Activity 34.6 Pg. 358 [20mins]