An Important Issue in Facility Location Analysis Is Business Climate

question 36

Multiple Choice

An important issue in facility location analysis is business climate. An unfavorable business climate could be indicated by which of the following?

• A) Similar-sized businesses nearby
• B) The willingness of local politicians to provide favorable treatment for a consideration
• C) The presence of other foreign companies in the case of international locations
• D) The local presence of companies in the same industry
• E) An established educational institution nearby

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Definitions:

Futures Contract

A standardized legal agreement to buy or sell a specific commodity or financial asset at a predetermined price at a specified time in the future.

US Treasury Repo

A form of short-term borrowing for dealers in government securities, using U.S. Treasury securities as collateral.

SONIA

The Sterling Overnight Index Average, an important interest rate benchmark in the UK that represents the average of interest rates banks pay to borrow sterling overnight from other financial institutions.

LIBOR

The London Interbank Offered Rate, a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans.