Business Location

Question 1

name the factors that affect location

Answer 1

• labour
• infrastructure
• government influences
• market & competition
• costs
• increased choice
• social reasons

Question 2

explain costs (examples etc)

Answer 2

costs could include rent, labour, transport. new businesses have limited capital, may not be able to afford their top choice.

Question 3

explain government influence (examples etc)

Answer 3

costs can be affected by availability of gov grants, gov tax. also, gov resources can be a factor.

Question 4

explain market and competition (examples etc)

Answer 4

being in close proximity to customers - consider footfall.

Question 5

explain social reasons (examples etc)

Answer 5

managers want to live in an environment that suits them and their families.

Question 6

explain infrastructure (examples etc)

Answer 6

road, rail, shipping. infrastructure is still important to e-commerce businesses (road hauliers, large scale manufacturers)

Question 7

explain increased choice (examples etc)

Answer 7

• maximising economies of scale
• political factors
• locating head office where tax is low
• consider wage levels