The value-to-weight ratio is very important with respect to manufacturing site location decisions because of its influence on transportation costs. Other things being equal, products with a high value-to-weight ratio are good candidates for exporting, while those with low value-to-weight ratios should be manufactured in multiple locations close to major markets to minimize transportation costs. For example, many electronic components have high value-to-weight ratios—although they are expensive, they are very small and weigh very little. Even when shipped halfway around the world, transportation accounts for a very small percentage of the total delivered cost. Given that, ask students to consider why low value but heavy products such as petroleum and refined sugar are shipped such great distances. Why are products such as automobiles, which are bulky and can be so easily damaged, also shipped great distances, rather than being manufactured locally?