SCMN 2150 Test 1 with Questions and Answers

SCMN 2150 Test 1 with Questions and Answers What factors should an executive look for when building a new building? ANSWER regional infrastructure plans, local tax incentives, long-term production plans, and much more. The Seven Factors ANSWER land, labor, capital, sources, production, markets, and logistics 3 factors driven from classical economics ANSWER land, labor, and capital Northeast ANSWER has constrained land and availability Southeast ANSWER has had and continues to have a more abundant supply of low cost and labor capital incentives of southern states ANSWER tax incentives, low interest economic development loans, and a plethora of other devices to lower local costs of capital all have an impact on the location decision. With facilities close to the I-95 interstate freeway in southern Virginia, they wanted to know what the cost picture would look like if they asked the development authorities in nearby North Carolina about incentives for building a distribution center there, just 40 miles south on I-95. The result was... ANSWER The company was able to cut its capital expenditures by $3 million because North Carolina effectively built the new DC for free