Imagine that you have been asked by Amazon to submit a bid to build, own and...

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?

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Expert Solution

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.

Rahul Sunny answered 1 year ago

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