1.5 Business location

Question 1

What are the factors to consider when choosing a location for a business? (RECIPF)

Answer 1

• Are you near raw materials.
• Are you near to employment that you need (high skilled/cheap labour).
• Are you near or far away from competitors.
• Are you near transport/technology (wifi speed).
• Proximity to markets
• Finance-new business/established business, lots/little money.

Question 2

What impact does the location have on a business? (SIC)

Answer 2

Sales will increase.
Image will increase.
Costs will decrease.

Question 3

What are some advantages of locating a business overseas?

Answer 3

• Cheaper labour.

- Access to raw materials.

Question 4

What are some disadvantages of locating a business overseas?

Answer 4

• There may be different rules and regulations in other countries.
• Customers may have different tastes.