Phase 1 Discussion Board 12 Assignment Example | Topics and Well Written Essays - 750 words

Phase 1 Discussion Board 12 - Assignment Example not be satisfied by the reasoning provided and therefore for them it is essential to list down the factors, rank them according to priority and then explain the reasoning behind it. Before setting up a plant for carrying out the manufacturing operations it is important for Autoedge to understand the supply and demand of the raw material in that area. Autoedge before setting up a manufacturing plant must analyze the demand of the product in that area and figure out whether or not it will be easily for the firm to procure raw material for making the product. Autoedge before carrying its manufacturing operation must also keep in mind that the product they are manufacturing must not fall short as per the demand of their customers and vice versa. It must also research about the brands of automobile that are preferred in those areas. The company cannot succeed in the long run if it does conducted effective research before establishing its manufacturing plant (World Trade Organization, 2013). As the economies become more integrated as Autoedge offers services throughout the globe, therefore the political and economic risk associated with its locations increases. Autoedge while selecting the location for its manufacturing operations must consider the areas that are more politically stable, or are not impacted by unstable government or as a result of terrorism. The areas that are not politically stable affect not only the businesses in those areas but also the consumers and national economies depending on the nature of the product or service being offered by the firm. The GDP of any country is considered an important factor for the location of a manufacturing plant. The amount and number of products being manufactured in a particular country attracts businesses. Businesses usually prefer setting up their plants in country with high GDP in order to maximize their profits. The country that has a flourishing economy usually serves as a profitable location for almost any