Firms decide to locate in areas/countries where they achieve the minimum average cost. The decision by Cadburies to close their Keynsham factory, has most to do with the relative cost of Labour of the UK and Poland. Follow the links for this story on the BBC.
http://www.bbc.co.uk/news/uk-england-bristol-12126550
What is the effect, if any, will this measure have on the S and D curves for labour of this move of production from the UK to Poland?
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