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IB1 Section 5.4 Location, Location, Location

AB
Quantitative factorsThese are measurable in *financial terms* and will have a direct impact on either the *costs* of a site or the *revenues* from it and its *profitability*.
OffshoringThe relocation of a business activity to the same company abroad or to another company in a different country
Multi-national corporation (MNC)A multi-national business with operations in more than one country
Insourcingthe use of a company's own employees for a task/function that would otherwise have been outsourced
Outsourcingthe practice or transferring internal business activities to an outside party, to reduce costs and/or increase productivity.
Infrastructuretransportation, communication, water, electric and other support systems of an area
Clusteringwhen a business locates near other organizations that operate in similar or complementary markets
Bulk-increasing businessesinvolved with products that increase in weight during the production process. Usually better to be located near customers in this case.
Optimal locationa business location that gives the best combination of quantitative and qualitative factors
Qualitative factorsnon-measurable factors that may influence business decisions
Subcontractingthe practice of assigning to another business part of the contract
Inshoringending offshoring contracts with overseas suppliers and returning functions or processes to business operations in the home country
Break-even analysisfinancial calculations comparing two or more choices
Investment Appraisalfinancial calculations used to identify the choice with the highest potential return over a number of years
Business process outsourcing (BPO)a form of outsourcing using a third party to take responsibility for complete business functions

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