4.4 Location decisions

Question 1

Factors relevant to the location decision of manufacturing businesses and service businesses

Answer 1

Quantitative factors:
Cost of site
Availability and cost of labour
Transport costs
Market potential
Issues
Government incentives

Qualitative factors:
Size of site
Legal controls
Infrastructure
Ethical

Question 2

Factors that a business could consider when deciding which country to locate operations in

Answer 2

Barriers to trade
Economy of the country
Legal controls
Costs
Cultural differences
Communication problems
Ethical concerns
Quality issues

Question 3

Role of legal controls on location decision

Answer 3

restrict businesses from operating near local housing or areas that could be harmed by noise pollution, light pollution, air pollution etc.