Case Study, Secondary Industry Slovakia

Slovakia car industry 

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Introduction

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 
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Social

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 
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Economic

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 
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Environmental

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
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Facts

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

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