Amazon’s new warehouse

Sunday, April 20, 2008
by Geoff Riley

The leading online retailer has opened a distribution centre in Swansea Bay, which will create 1,200 jobs - this BBC news video is a great clip to show to demonstrate some of the economies of scale that Amazon is able to exploit when building a warehouse of such enormous size and students can also get a feel for some of the local and regional multiplier effects from the investment and the importance attached to such inward investment for the Welsh economy. The evaluation in discussion could be broadened to include the widening range of products that Amazon is now stocking and selling together with the fact that the majority of products in the warehouse have been imported.

Here is the link to the clip

Posted to A2 Micro • AS Micro • Business Economics
Tags: investment, economies of scale, amazon
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