Location Factors Flashcards
(15 cards)
What factor is affected by high location costs leading to high prices?
Cost of land
High location costs make the firm less competitive.
What are firms always looking for in relation to location?
A cheap location
Firms seek affordable land to maintain competitiveness.
Why do firms look for space to expand?
Cheaper and less disruptive
Expansion in spacious areas minimizes operational disruptions.
What does bulk decreasing imply for a firm’s location in relation to supplies?
Near their supplier
Firms using bulky materials prefer proximity to their suppliers.
What does bulk increasing imply for a firm’s location?
Near the market
Products that gain weight during manufacturing should be close to the market.
What is a reason firms are trying to locate nearer to consumers?
Better transport links
Improved transport options encourage proximity to consumers.
What is a key consideration for labor location?
Accessible areas
Firms need to locate where they can cover the required labor needs.
Why is market accessibility crucial for service industries?
Customers don’t want to travel
Service industries depend on customer convenience.
What infrastructure elements are important for firm operations?
Transport links, health services
Efficient infrastructure is key for smooth and cost-effective operations.
How can government intervention benefit a firm?
Receive funding
Government support can provide financial assistance to firms.
What are qualitative factors in business location?
Qualitative factors include personal reasons for choosing a location.
What does the importance of location depend on?
The importance of location depends on the nature of the business.
What does ‘footloose’ mean in a business context?
‘Footloose’ refers to a business that is not tied to a specific location.
How do new start-ups compare to established firms in terms of financial resources?
New start-ups typically do not have the financial resources compared to established firms.
What should be distinguished in business evaluation?
It is important to distinguish between theory and practice.
