In: Economics
Imagine that you have been asked by Amazon to submit a bid to build, own and maintain a distribution facility on a remote offshore island off Northeast Canada. The island has a significant population, but no bridges to the mainland. Air and ferry services are very limited. Using economic terminology, discuss what sort of considerations you would take into account when considering the transactions costs associated with this project. What actions would you take to protect your investment should you be the successful bidder?
For submitting a bid to build various factors are depend on
that.That factors is consider more to when submition a bid to build
,own and distribution facility on a remote offshore island off
Northeast Canada.
So the factors given below:-
Risk related factors- The potential risk factors and the underlined
that original risk.The assessment of risk in that particular
offshore island areas distribution.
Efficiency in business& capability to continuing this
project -- the capability and efficiency requirement of Amazon
should need to satisfy.
Return - The return or profitability is very importent factor .The
project which should be profit oriented if it is not a profit
generated project then not submit this bid.
So these above factors are very importent considering before
submitting bid.
And also taken some actions need that need to take to protect this
investment to become a successful bidder.
--- To obey with the company measures and policies for the better
conducting the business.
---Also well knowledge need for the better awareness in the
investment policies of Northeast Canada
----Also obeying common laws and policies conducting this
project.
--- contribution and preserving long term capital for the
development in the project in a modified manner in future.
--- The ensuring a better transport facilities for long term and
fixed and continuing manner.
---- provide and maintain the labour force for the support services
and providing a better incentive formula to them.
---- To take more safety measures in the delivery of items in a
proper way of transport.