1.4.2 Business Location

Question 1

What four factors impact where a business locates

Answer 1

Market (customers)
Workforce (labour)
Materials for prodution
Competition

Every business will decide differently

Question 2

Proximity to market (customers)

Answer 2

Locating near customers for convenience, especially if there is a lot of competition

Question 3

Proximity to labour

Answer 3

Locating in a place to get the cheapest workers

Question 4

Proximity to materials

Answer 4

Locating near raw materials in order to get them cheaper due to less shipping costs

Question 5

Proximity to competitors

Answer 5

Locating near a competitor in order to take customers from that competition or to share customers. Eg. clothes shops share customers

Question 6

Infrastructure

Answer 6

Facilities that support everyday economic activities

Question 7

E-commerce

Answer 7

Transactions that take place through the internet

Question 8

M-commerce

Answer 8

Transactions that take place using a mobile technology like a mobile phone

Question 9

Advantages of E-commerce and M-commerce

Answer 9

Lower costs
Flexible working hours
Access to a larger market of customers
Open 24 hours a day 7 days a week
Low Price Marketing and Promotion