A product's value-to-weight ratio affects location decision primarily because of its influence on:

Question

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One of the product features affecting location decisions is the product's value-to-weight ratio because of its influence on transportation costs. Many electronic components and pharmaceuticals have high value-to-weight ratios; they are expensive and they do not weigh very much. Thus, even if they are shipped halfway around the world, their transportation costs account for a very small percentage of total costs.

A Product's Value-To-Weight Ratio Affects Location Decision Primarily Because of Its