Location And Scale

Question 1

Benefits of optimal location

Answer 1

Lower costs, being closer to customer, overcoming trade barriers,

Question 2

Factors affecting location

Answer 2

Geographic location, political factors, infrastructure of region, availability of lower costs

Question 3

Offshoring

Answer 3

This occurs when a business moves production out of its own country to another

Question 4

Globalisation

Answer 4

Occurs when countries become more open to trade and the movement of money people and goods across boarders

Question 5

Capital

Answer 5

Is the money invested into a business and is used to purchase a range of assets including machinery and inventories

Question 6

Economies of scale

Answer 6

Occurs when the unit costs fall as the scale of production increases

Question 7

Diseconomies of scale

Answer 7

Occur when unit costs increase as the scale of production increases

Question 8

Causes of internal economies of scale (5)

Answer 8

Technical, financial, marketing , purchasing, managerial

Question 9

Types of internal diseconomies of scale

Answer 9

Communication, motivation and co-ordination and control

Question 10

Quality

Answer 10

Product is one that meets customer expectations

Question 11

Quality control

Answer 11

Process relies on checking products for faults at the end of the production process