Local communities states and even countries often compete to

Local communities, states, and even countries often compete to get large firms to locate in their area. Using the internet or other resources, describe at least one example of a major firm located in a new city, state, or country and list the benefits described by the firm or local government officials.

The CEO has asked you to join a site selection team where your job is to decide where to build a new distribution center to support the firm\'s South American operations. As the logistics representative on the team, list at least five factors you would consider in making your site selection decision.

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Solution

1.
One example can be used of Ford motors having presence at different locations in the country of Mexico and manufacturing different models and engines for its models. One manufacturing setup is located in Chihuahua and the other manufacturing setup is located in Hermosillo, Sonora among the other locations in Mexico. The benefits counted by the local government or firms are as follows:
A.   Creation of new employment opportunities in the country where the labor force migrates to the USA and Canada
B.   Creation of the derived demand in the country such as demand of steel and other spares and raw inputs that is created by the presence of these manufacturing setups
C.   Faster economic growth and higher GDP of the country
D.   Increase in the aggregate demand of the country, creating an opportunity for the other firms to supply and cater the demand
E.   Improvement in infrastructure in the country so that other new manufacturing setups and or FDI in different forms are attracted in the country.

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