Final answer:
Three factors relating to the cost and importance of logistics are proximity to suppliers and customers, quality of transportation and communication networks, and level of taxes and government competence.
Step-by-step explanation:
Three factors relating to the cost and importance of logistics are:
- Proximity to suppliers and customers: Being close to suppliers reduces transportation costs and ensures timely delivery of inputs, while being close to customers reduces delivery time and improves customer satisfaction.
- Quality of transportation and communication networks: Efficient and reliable transportation infrastructure reduces lead times, minimizes disruptions, and lowers costs. Advanced communication networks enable real-time tracking and coordination.
- Level of taxes and government competence: High taxes can increase operational costs, while favorable tax regulations can make logistics operations more cost-efficient. The competence and honesty of the local government can impact the ease of doing business.