The cost of transporting materials and finished goods usually does not affect decisions about where to locate manufacturing facilities to any great degree.

Question

Quizplus · Accepted Answer

The cost of transporting materials and finished goods is a significant factor in making location decisions for manufacturing facilities. High transportation costs can affect profit margins and competitiveness, and therefore companies often choose to locate facilities near suppliers, markets, or transportation infrastructure to minimize these costs.

The Cost of Transporting Materials and Finished Goods Usually Does