Case Study, Secondary Industry Slovakia

Slovakia is has a high anount of secondary industry. 

This is because Slovakia is one of the chapest countries to set up a factory when considering numerous factors.

.... about Slovakia 

• central Europe 
• relatively small country 
• Imports at 14502 US$ per capita compared to Britains 10603
• Exports at 14385 US$ per capita compared to Britains 7696
• Third of GDP from industry 
• Gross national income per capita is 19340 (Britain 33000) means labour is cheap 
• flat land makes easier to build factories and able to build close to capital 
• This means good transport links and large number of workers
• Skilled workforce
• Large enterprise zones attract governement help, less government influence in UK 
• Tax lower than the UK 

How could location change in the future? 

• Quality of life may decrease in Slovakia
• Highly skilled personnel may decrease as they become more educated and tehrefore achieve better jobs 

How could location change in the future 

• Slovakian government may not be able to help fund anymore
• Enterprise zones may fall because of this 
• Cheaper labour elsewhere in world for example China 
• Expanding markets in otehr parts of the world meaning demands for cars increasing 

How could location change in the future

• High levels of pollution in the Slovakia area may force changes to happen 
• Raw materials may decrease 
• Small country meaning limited space, especailly when mountainous in other areas apart from Bralislava
• Land locked therefoe not ideal for boat transportation

Bralislava- Output of 250000 cars a year (volkswagon plant 1991) 

Martin- Volkswagon manufacturing components (2000) 

Bralislava and Martin- emply 8700 between the two of them 

Trnava- 2006 Peugeot state of the art plant will export 300000 cars per year

Zilina- Hyundai in 2006 estimated investment of $1.4 billion 

companies what to choose OPTIMUM LOCATION for their facotries 

Optimum location = location that best satisfies the objectives of the company ie the maximum profit location