Describe the three categories of factors that influence where an international firm decides to locate its manufacturing activities.

Answer has been stated below.

Explanation:

Although there are many factors which determine the location of manufacturing units by international firms by here we are going to talk about three which are :

a) Government stability: it is the primary concern for any firm to invest in foreign countries and it determines that their objectives would be secured.

b) Labor force: it is very important because if the labor provided id not economically beneficial end qualitatively competent, the firm would suffer a loss.

c) Infrastructure: It includes roads, availability of the electricity, telecommunication system, etc.

levels of production can be increased by technology while holding labor and capital constant, because increased technology makes the production process more efficient. subsequently, the lras curve is almost a vertical line, that can shift to the right, with an increase in technology.

the relationship between the lras curve and the ppc is that both can make the economy could grow. the ppc achieves that when it shifts outward because of more resources or technological advances while the lras curve shifts if more resources are developed or if there are technological advances.

the lras curve is a vertical line at an output level that represents the number of goods and services a nation can produce over a sustained period using all of its productive resources as efficiently as possible with all of the current technology available to it.

the production possibilities frontier (ppf) is a graphical device that is used for economic analysis of production decisions because the ppf measures the maximum possible combinations of two goods that an economy is capable of producing with its currently available resources and technology.

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