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Why is an area with a strong existing manufacturing base attractive to a new plant?
ABecause rivals there will agree not to compete on price
BBecause such areas are always exempt from local taxes
CBecause the workforce there needs no training at all
DBecause resources, suppliers, and transport are easier to reach
Answer & Solution
Correct answer: D. Because resources, suppliers, and transport are easier to reach
1. The manufacturing environment of a location is one of the factors weighed in site selection.
2. Where many manufacturers in an industry have already clustered, supporting resources have grown up around them.
3. Manufacturing workers are more readily available in such an area.
4. Suppliers and transportation are also easier to reach.
5. Together those advantages can increase a plant's operating efficiency, which is the real attraction.
6. Options A and B invent guarantees no location can give, and option C is wrong because an experienced labor pool still needs firm-specific training.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 10 "Achieving World-Class Operations Management", section Manufacturing Environment_
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