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S. market area. However, it is difficult to assess the influence of any single subsidy because the other items are not equal. Their influence on the decision to locate is muted by the fact that so many areas offer direct and indirect aid, especially to large manufacturing plants, and, at the intra-urban scale, to large retail stores. From CHAPTER TWO 41 the locator's point of view, subsidies become things to be asked for, but not critical decision factors. Locational controls have a mixed record.

It then shifted over to Taiwanese and Korean subcontractors in the late 1970s, and is now working with suppliers in China, Thailand, Malaysia and Indonesia. Molnlyeke benefited from the lively demand for textiles in a protected home market in the late 1940s and most of the 1950s. When trade barriers were lowered expensive Swedish labor became a competitive handicap. It compelled first rationalizations, then diversifications, from yarn, fabric and apparel into nonwoven pulp-based products (fluff) like diapers and sanitary towels, and then the transfer of apparel production abroad.

100 - - - - -=",L ~ - I , ,/ 80 I r -- \ . 4. Hourly wage with fringe benefits, mechanical engineering (ISIC 38), certain countries, 1965-1991. Source: Swedish Employers' Confederation (1975; 1984; 1993). All that relates to the hourly remuneration. But the number of hours actually worked varies also. A. and 1,500 in Germany. A German company had only three-fourths of the hours (basically output) of its Japanese competitor to cover the fixed cost. Clearly, nominal wage rates arc not a reliable guide to total labor costs.

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