Country As A Production Location | 60 Second Business

When a business decides where to MAKE its products — rather than where to sell them — the decision is shaped by push factors at home and pull factors in each candidate country.
The push factors come from home. Rising wages. Skills shortages. Environmental or regulatory limits. Weak infrastructure. High corporation taxes. All push production out of the home country in search of better conditions.
The pull factors come from the target country. Edexcel names nine. Costs of production — wages, energy, land. Skills and availability of labour. Infrastructure — ports, roads, industrial zones. Location in a trade bloc — does producing here give preferential access to big markets like the EU? Government incentives — tax breaks, subsidies, grants for foreign investors. Ease of doing business. Political stability. Natural resources — minerals, energy, land. And likely return on investment — the ultimate financial test.
Classic examples. Mexico for its USMCA trade-bloc access to the US. Ireland's low corporation tax pulling in pharma and tech. Vietnam's cheap skilled labour and trade access for garments and electronics.
Production-location decisions are long-term and expensive to reverse. The push factors explain why production leaves home — the pull factors explain where it goes.

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