Cost comparison studies: Their value, validity and future from an international perspective

Abstract

Physical, economic, social, political or cultural factors are commonly defined as factors businesses consider when selecting a new site to locate. This paper examines which selection factors are considered important by potential investors and their advisors by analyzing the value of international cost comparison studies, specifically looking at cost-related site selection factors. This research analyses the site selection process on an international level and concludes that sponsorship is an influencing factor. The author argues that locations that do not have the ability to financial contribute to the development of the cost comparison study are at an unfair advantage.

Keywords: site selection, sponsorship, location decision