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Your Organization Is Considering Building a New Automobile Manufacturing Plant

question 7

Essay

Your organization is considering building a new automobile manufacturing plant.The company is considering building their facility in either China or Tennessee (USA).
China is a rapidly expanding economic market, Tennessee is situated in a more mature market in which other car manufacturers are already located.
Using this limited information and your knowledge of these two options, China and Tennessee, provide THREE reasonable arguments for each option that relate to supply chain management.


Definitions:

Nominal Wage

The amount of money paid to an employee without adjustment for inflation or deflation, often referred to as the dollar wage.

Price Level

The mean of present costs for all types of products and services generated within the economy.

Real Wage

Refers to the purchasing power of wages, taking into account the effects of inflation and deflation on the value of money.

Marginal Resource Cost

The additional cost incurred by acquiring or using one more unit of a resource.

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