Final answer:
Location is a critical factor in the private sector, with considerations including labor costs, access to suppliers and customers, infrastructure, taxes, and local governance overriding the cost of environmental regulations. Location does indeed matter in the private sector, which is a true statement.
Step-by-step explanation:
Location does indeed matter in the private sector, which is a true statement. In decision-making processes for companies, many factors come into play. These include the costs of labor and financial capital, proximity to reliable suppliers and customers, quality of local transportation, communication and electrical power infrastructures, level of taxes, and the competence of local government.
Notably, while the cost of environmental regulations is considered, it often represents only a small fraction (1 to 2%) of total costs for a large industrial plant. Therefore, other factors tend to overshadow environmental costs when determining factory locations. Richard Florida's research on high-tech cities highlights the value of quality of life in attracting talented employees, with diversity and tolerance being crucial elements for fostering business growth. Furthermore, in certain industries with significant location constraints, such as ports, workers have less wage competition and can demand higher wages due to the difficulty of relocating these industry facilities.