Where a production facility is located can have a significant impact on how efficiently the facility operates

1a) Where would you locate a clothing manufacturer that makes light-weight jackets out of cotton?
1b) What factors would influence your decision on where to locate that facility?

Manufacturing light-weight jackets does not require exceptional labor skills, therefore the clothing manufacturer could be located in low waged developing countries.

Three main factors influence this decision:
a) Proximity of raw materials, cotton in this case.
b) Proximity of labor sources
c) Proximity and availability of potential markets

2a) Where would you locate a plant that manufactures electrical components for US-manufactured automobiles?
2b) What factors would influence your decision on where to locate that facility?

Manufacturing electrical components for US-manufactured automobiles require special skills and highly trained labor, therefore the plant needs to be located in a developed country - because of their proximity, the USA and/or Canada are more suited in this case.

Two main factors influence this decision:
a) Proximity of raw materials.
b) Availability, affordability, quality and proximity of labor sources.