Industrial location analysis typically attempts to:
answer
*minimize costs.*
A)
maximize sales.
B)
focus more on human resources.
D)
avoid countries with strict environmental regulations.
question
A location decision for an appliance manufacturer would tend to have what type of focus?
answer
*cost focus*
B)
environmental focus
C)
revenue focus
D)
education focus
E)
focus on finding very highly skilled technicians
question
A location decision for a traditional department store (e.g., Macy's) would tend to have what type of focus?
answer
*revenue focus*
A)
education focus
B)
cost focus
C)
labor focus
E)
environmental focus
question
For a location decision, labor productivity may be important in isolation, but low wage rates are a more important criterion.
answer
FALSE
question
Unfavorable exchange rates can offset other savings in a location decision.
answer
TRUE
question
Manufacturers may want to locate close to their customers if the transportation of finished goods is expensive or difficult.
answer
TRUE
question
The reason fast food restaurants often are found in close proximity to each other is:
answer
*location clustering near high traffic flows.*
B)
low cost.
C)
they enjoy competition.
D)
availability of skilled labor.
E)
all of the above.
question
Currency risk is based on what assumption?
answer
*Values of foreign currencies continually rise and fall in most countries.*
A)
The U.S. stock market fluctuates daily.
B)
Firms that do not continuously innovate will lose market share.
C)
Changing product lines by reacting to every current trend may alienate the customer base.
E)
The value of one dollar today is greater than the value of one dollar to be received one year from now.
question
Governmental attitudes toward issues such as private property, intellectual property, zoning, pollution, and employment stability may change over time. What is the term associated with this phenomenon?
answer
*political risk*
A)
legislative risk
B)
democratic risk
C)
judicial risk
E)
bureaucratic risk
question
Tangible costs include which of the following?
answer
*taxes*
A)
zoning regulations
B)
quality and attitude of prospective employees
C)
availability of public transportation
E)
climatic conditions
question
Intangible costs include which of the following?
answer
*all of the above*
A)
quality of education
B)
availability of public transportation
C)
quality of prospective employees
E)
none of the above
question
Which of the following is the best example of the proximity rule that, for service firms, proximity to market is the most important location factor?
answer
*Few people will travel out-of state for a haircut.*
A)
Patients will travel very long distances to have their hernia surgeries performed at Shouldice Hospital.
C)
Metal refiners (smelters) locate near mines to accomplish significant weight reduction near the metal's source.
D)
Furniture makers choose to locate near the source of good hardwoods, even though it means locating near other furniture manufacturers.
E)
Soft drinks are bottled in many local plants, where carbonated water is added to proprietary syrups that may have been shipped long distances.
question
Which of the following methods best considers intangible costs related to a location decision?
answer
*factor-rating method*
A)
locational cost-volume analysis
B)
center-of-gravity method
C)
the transportation method
D)
crossover methods
question
Service firms choose locations based, in part, on the revenue potential of a site.
answer
FALSE
question
The location decisions of goods-producing firms will generally pay more attention to parking, access, and traffic counts than will service location decisions.
answer
FALSE
question
Traffic counts and demographic analysis of drawing area are associated with:
answer
*service location decisions.*
A)
locational cost-volume analysis.
B)
the center-of-gravity method.
C)
manufacturing location decisions.
E)
the transportation model.
question
Which of the following is most likely to affect the location decision of a service firm rather than a manufacturing firm?
answer
*parking and access*
B)
energy and utility costs
C)
attitude toward unions
D)
labor costs
E)
cost of shipping finished goods
question
A jewelry store is more likely than a jewelry manufacturer to consider ________ in making a location decision.
answer
*appearance/image of the location*
A)
transportation costs
B)
quality of life
D)
cost of raw materials
E)
taxes
question
Which of the following is most likely to affect the location strategy of a manufacturing firm?
answer
*utility costs*
A)
parking availability
B)
competition in the area
C)
purchasing power of drawing area
D)
appearance/image of the area
question
Geographic information systems can assist the location decision by:
answer
*combining geography with demographic analysis.*
A)
computerizing factor-rating analysis.
C)
updating transportation method solutions.
D)
providing good Internet placement for virtual storefronts.
E)
automating center-of-gravity problems.
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