1.5 - Location Flashcards
Tariff
Foreign goods imported into a country
Imports
Goods and dervices purchased from overseas by consumers of businesess
Quota
Limit on number of foreign good imported to a country
Labour
the amount of physical, mental, and social effort used to produce goods and services in an economy. Hairdressing, house building, teaching and the fashion industry are examples of labour intensive industries.
Why is location important
Costs - the costs of facilities can affect the level of profit
Sales - location can affect whether the business gets
Image - perfume from southampton or wine from grimsby may struggle to sell as it doesnt have as many people
How does proximity to market influence location
Businesses need to operate close to customers . Eg a cofee shop
Online businesses don’t have to however
How do competitors influence business
Some business may want to be far away from eachother eg: petrol stations
However some may want to be close
Restaurants as a area may be known for having good resturants and they may want to share that reputation
How does availability of raw materials affect location
Some rely on these materials
Eg: a wine business will want to be near grape vines to produce wine
How does cost of labour effect location
Some will be set up in places with good universitues to recruit highly skilled and able individuals
Some may be placed in places with a low minimum wage such as china and vietnam
How does transport effect location
Businesses needing to export a product may be close to a airport
How do costs affect location
Depending on how developed the business is
You may start a business at home to save and later move into a office. Choosing higher cost locations could lead to higher profit
Advantages of locating overseas
Cheaper labour
Access to resources unavailable in current location
Disadvantages of locating overseas
Different rules
People may have different tastes
