If any one wants to start a business he/she has to decide the location facility first. while deciding the location facility we have to look into the costs such as, 1.land costs 2. rawmaterial costs 3.labour costs 4.transportation&distribution costs. there are some main issues involved in facility location. they are, 1)proximity to consumer 2)business climate 3)total costs 4)infrastructure 5)quality of labpour 6)suppliers 7)political risks 8) govt barriers 9)trading blocks 10) environmental regulation 11)host community 12) competitive advantage. there are some factors which are to be consider, strategic factors: 1)low cost for exports, 2) low costs for production 3)regional production facility techonological factors:1) availability of production technology 2)economies of scale-few facilities 3) lower fixed costs-many facilities 4)flexiblity of production technology macro economic factors:1) tarrif & tax incentives 2) free trade zones 3)additional grants by govt coming to the finance sources , 1)self financing or using our own money in pocket 2)family members funding 3)business incubators or supporters 4) bank loans 5) government programmes some times govt or banks give loans & grants by considering social benfits like generation of employment, cultural promotion, pollution free business plan, minimizing resource wastage, etc. at the same time social costs such as less employment, creating more pollution, environmental harm full, etc will cause to reject the B Plan.
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