1.5 Business location

Question 1

Factors that influence business location.

Answer 1

Proximity to market: businesses like retailers need to be close to their target market to increase chances of sales.
Availability of raw materials: businesses like manufacturers need to be closer to raw materials to reduce travelling costs.
Labour: businesses that need high-skilled labour are likely to locate near universities/places with high living standards.
Competition: businesses like corner-shops or petrol stations are likely to locate far apart from each other.
Costs: businesses that are not affected by demands may locate in rural/desolate areas as they are cheaper.