Business location

Question 1

What are the 8 factors that affect business location

Answer 1

• Costs
• Increased choice in international location
• Social reasons
• Government influences
• Labour
• Infrastructure
• Market
• Competition

Question 2

How does cost affect business location

Answer 2

Startups must evaluate costs like rent, refurbishment, transport, and labour. High costs could deter business from certain locations.

Question 3

How does target market affect business location

Answer 3

Businesses want to be near their target market and potential customers to maximise visibility and convenience.

Question 4

How does competition affect business location

Answer 4

Close to competitors = lots of footfall, shared demand
Far from competitors = less direct competition

Question 5

How does infrastructure affect business location

Answer 5

The business must assess existing infrastructure (transport, utilities, communication) to predict additional costs.

Question 6

How does labour affect business location

Answer 6

Businesses requiring skilled workers should locate in areas with good education systems and a qualified workforce.

Question 7

How does government affect business location

Answer 7

Governments may influence location through minimum wage laws, taxes, and subsidies that reduce operational costs.

Question 8

How do social reasons affect business location

Answer 8

Some areas are unsuitable for certain businesses, e.g. a nightclub in a town with an aging population.

Question 9

How does increased choice in international location affect business location

Answer 9

International locations allow large firms to exploit economies of scale, lower labour costs, and fewer regulations.