Short Answer

A chemical firm is considering how best to supply the world market for nitric acid. A manufacturing plant costs approximately $20 million to construct and requires a moderately skilled workforce. The total value of the world market for this product over the next 10 years is estimated to be between $20 and $30 billion. The tariffs prevailing in this industry are moderate.

1. Should the firm favour concentrated or decentralised strategy? Give reasons for your answer.
2. What kind of locations(s) should the firm seek for its plant(s)? Give reasons for your answer.