Answer :

Both the sites, X and Y, have its own pros and cons. While for site X, raw materials like iron ore and water are far, for site Y market and labour is far.

a. We feel that site X would be more appropriate since labour supply and market availability is crucial for the success of any enterprise.

b. We feel that site Y is more appropriate since the proximity of raw materials like iron ore, limestone and water will reduce the cost of production a part of which can be invested in bringing in skilled labour and transporting finished product to chief market.

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