Business Location

Question 1

What is protectionit measures?

Answer 1

Protectionist measures are policies that governments use to protect their own businesses against foreign competition

Question 2

What is a tariff?

Answer 2

A tariff is a tax on foreign goods imported into a

country.

Question 3

What are imports?

Answer 3

Imports are goods and services purchased from

overseas by consumers of businesses.

Question 4

What is a quota?

Answer 4

A quota is a limit on the number of foreign goods

imported into a country.

Question 5

Advantage of locating overseas?

Answer 5

Cheap Labour wages in countries such as China and India are much lower than in the UK.

Question 6

Advantages of locating overseas?

Answer 6

Access to resources that are not easily available in the UK. For example, growing bananas is easier in South America than in England.

Question 7

Advantages of locating overseas?

Answer 7

Financial incentives from foreign governments. Some governments are keen to attract foreign businesses to their country and so offer money or lower taxes to attract them. This may make it cheaper for the business to operate in that country.

Question 8

Advantages of locating overseas?

Answer 8

Avoids protectionist measures by foreign governments. Some governments want to help their own firms and so they protect them from overseas
competition. This can done through taxes on foreign goods (called tariffs)