Question

Which regions would you recommend for direct production for market expansion? Which for exporting? Why?

Answer 1

Firstly, both the factors as mentioned in the question, i.e., production and export varies from the product to product.

PRODUCTION:

In the criteria of deciding about the regions where the direct production of the products shall be done in respect to expand the market of such product, it should be kept in the mins, that the factors such as cost of raw material, transportation cost, labor cost, etc should be kept in mind.

Raw Material: Such region should be chosen where raw material is readily available as at the cheaper prices.

Labor Cost: The labor cost at such region should also be considered and plays an important role in deciding if such region is worth opting for the direct production or not.

Transportation Cost: The transportation cost should also be considered.

EXPORT:

In the criteria of deciding about the regions where the products should be exported, the most important criteria is to study the market of such areas. It should be considered if there is a demand of such product in that particular region or not.