Government aid_locating a car assembly plant

The summary from Tuesdays activity : Government aid - who wins the car assembly plant? Where Should Holden Build their Car Factory? Germany • Many skilled workers • High quality • Developed country with good infrastructures • Most developed country in Europe • 1 year rent free UK • One of the strongest countries in the world • It has a large population for labour • Many visitors to advertise the factory • Global wide trading • Developed country so it’s easier for importing • High rate of export, low cost of materials • Government aid-no rent for 2 years • Reduce taxes, support with transportation • Many raw materials and components Italy • Located in the center of Europe, it’s easier to export to Europe • Government aid of 1 year rent free • Efficient work force • Good relations with Australia • Has a lot of land • Trade with Australia is increasing • Trade with other nations (France, US, Germany) • Skilled labour • Trustworthy Malaysia • Price of labour is cheaper • Capable of producing a lot of products • Offer land for free for 15 years. No rent during construction • Government will get 20% of profit if Holden makes profit above the value of the rent • Factory outside city, but not far Discussion What are your arguments? What are the other arguments? Do you agree with the decision of the UK? What is the role of the government aid in each country?

Write what the top four most important location factors for choosing the right site for a car factory. Location factors Many skilled workers living in the local area-Labour Force; Many components made in local factories-Components, Raw Materials; Access by road to major ports for export markets-Transport, Markets; Good rail links to major UK markets-Transport, Markets; Good raod and rail links for transport of components to factory and finished cars to markets-Transport, Markets; Attractive countryside and pleasant villages-Labour force, Site; Electric power available through the National Grid-Energy supply; Large, flat land with room for expansion-Site; Co-operation with national Government-Capital, Other; Good communications with Europe-Markets, Capital; Good industrial relations-Markets, Capital; Helpful local authorities-Capital, Other; History of car making in the UK-Other.