Factors of location in an LEDC - Fiat in Brazil

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Background - What is the secondary sector?
the secondary sector is the manufacturing sector, it is where saw materials are made into the finished products ready for sale.
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Background - What type of secondary sector business is Fiat?
Fiat is a car manufacturer
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Background - where has fiat located one of its factories in Brazil?
Fiat has located in Betim in southern brazil.
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Background - In Betim how many people does fiat employ?
In Betim fiat employs 10,000 people
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Background - How many cars are produced in Brazil each year?
Just over one million cars are produced in Brazil each year.
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Background - Where is Fiats HQ?
Fiats HQ is in Turin, Italy
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Factors of location questions - Betim is close to large centres of population, give an example.
Betim is close to Sao Paulo a large centre of population - a city.
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Factors of location questions - Betim has a potentially huge domestic Market which is one of the reasons it was chosen for the location of industry, what does a potential domestic market mean?
a potential domestic market means there are a lot of potential customers close by who would be likely to buy a fiat.
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Factors of location questions - In Betim there is a large amount of cheap labour what does this mean for the company?
a large amount of labour means there is a big availability of people who would be willing to work in the factory, if they are cheap labour this means they will work for lower wages allowing Fiat to save on labour costs and maximise profits.
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Factors of location questions - There are fewer trade union restrictions in Brazil, why is this an advantage for fiat?
fewer trade union restrictions means that less time and money is wasted on strikes which can slow down the production of cars. this can lead to loss of capital (money) and unsatisfied customers.
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Factors of location questions - Brazil has and abundance of ethanol fuel, why is this good for Fiat?
Ethanol fuels is used in 50% of recent car production as it is kinder to the environment because it does not involve fossil fuels and so reduces CO2 emissions as well.
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Factors of location questions - loans and grants are being offered by the government to help increase manufacturing in Brazil, what are these things and what do they mean for Fiat?
loans are a temporary way of lending money, where money is paid back in instalments including interest, grants are amounts of money given to businesses by the government which do not have to be paid back. These extra sources of finance make it easier
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Factors of location questions - what do lower health and safety standards allow the company to do?
Lower health and safety standards allow the company to save money.
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Factors of location questions - Betim has prepared sites with existing infrastructure, what does this mean for Fiat?
prepared sites and existing infrastructure save money for Fiat ans there is o need to build these things apon arrival.
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Factors of location questions - what are brazilian workers have a reputation for?
Brazilian workers have a reputation for being extremely hard working and highly productive
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Factors of location questions - the site is on the edge of Betim what does this mean for fiat? (cost) (proximity to workers)
Being on the edge of Betim reduces the cost of the land, but also allows the factory to be within close proximity to the workers the majority of which live in Betim.
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Factors of location questions - the site is on flat land, what does this mean for fiat?
the flat land makes it easy for a factory to be built.
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Background - What type of secondary sector business is Fiat?

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Fiat is a car manufacturer

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Background - where has fiat located one of its factories in Brazil?

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Card 4

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Background - In Betim how many people does fiat employ?

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Background - How many cars are produced in Brazil each year?

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