1.5 Business Location

Question 1

What may affect a business’ location?

Answer 1

• type of business.
• proximity of the market.
• availability of raw materials.
• suitable supplies of labour.
• competition.
• costs.

Question 2

What is meant by the term “costs”?

Answer 2

The expenditure that is necessary to set up and run a business.
(the amount of money that a business spends on the production of their products)

Question 3

What is meant by the term “globalisation”?

Answer 3

The trend for markets to become worldwide in scope.