Managament There Are Two Main

The relative political and economic stability is the fourth qualitative factor to consider. Political instability can result in severe business disruptions.

The first quantitative factor is labor costs. Normally, this is evaluated with respect to the education and skill level with an eye to striking a balance between the best quality of labor and the lowest price. The second quantitative factor is the exchange rate. Fluctuations in exchange rates not only add a layer of complexity to the business but can have an adverse impact on profitability as well. The third quantitative factor are the tax rates.

Each jurisdiction has its own tax regime and this must be taken into consideration because of its impact on profitability. Moreover, some regions may offer specific tax incentives to attract certain types of industries..


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