The approach to the proposal of establishing a plant at a location just because low cost labor is available is to be explained. Concept Introduction: The overall business requirement of locating a new plant at a certain location is not to minimize the labor cost but to maximize profits and business. Therefore it is never enough for a location to have low labor cost as a deciding factor.

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Chapter 13, Problem 3VC

Summary Introduction

Interpretation: The approach to the proposal of establishing a plant at a location just because low cost labor is available is to be explained.

Concept Introduction: The overall business requirement of locating a new plant at a certain location is not to minimize the labor cost but to maximize profits and business. Therefore it is never enough for a location to have low labor cost as a deciding factor.

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