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Pantro manufactures laptop computers. The company was established 20 years ago and has always had its factory in its home country. Pantro exports its products

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Pantro manufactures laptop computers. The company was established 20 years ago and has always had its factory in its home country. Pantro exports its products worldwide. Pantro's directors are considering relocating production to a developing country that has suitable infrastructure, including excellent transport links, but much lower labour costs than the company's home country. The potential host country's government is prepared to offer generous grants and tax incentives to encourage Pantro to relocate. Much of Pantro's production is mechanised, although the final assembly and packing of laptops is labour-intensive. (i) Identify the two most significant risks arising from the relocation of production, giving reasons for their selection and recommending a suitable mitigation for each. [10] Suggest the two most significant problems that will arise in budgeting for labour costs at the new factory, giving reasons for their selection and recommending a response to each. [10] Pantro manufactures laptop computers. The company was established 20 years ago and has always had its factory in its home country. Pantro exports its products worldwide. Pantro's directors are considering relocating production to a developing country that has suitable infrastructure, including excellent transport links, but much lower labour costs than the company's home country. The potential host country's government is prepared to offer generous grants and tax incentives to encourage Pantro to relocate. Much of Pantro's production is mechanised, although the final assembly and packing of laptops is labour-intensive. (i) Identify the two most significant risks arising from the relocation of production, giving reasons for their selection and recommending a suitable mitigation for each. [10] Suggest the two most significant problems that will arise in budgeting for labour costs at the new factory, giving reasons for their selection and recommending a response to each. [10]

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