1d-Decision on location Flashcards
Q: What is business location?
A: Business location is the place where a business operates and carries out its activities.
Q: Why is business location important?
Affects costs, profits, and customer accessibility.
Impacts the supply chain, workforce, and logistics.
Some businesses operate from a single location, while others distribute operations.
Online businesses may not require a physical location.
Example: Amazon has a vast network of warehouses instead of relying on a single location.
What factors influence the choice of business location?
Proximity to market
Proximity to Market
Reduces transport costs and improves customer accessibility.
eg: A luxury car showroom is located in an affluent area.
What factors influence the choice of business location?
Proximity to Labour
Proximity to Labour
Skilled workforce availability.
eg: High-tech firms cluster in Silicon Valley.
What factors influence the choice of business location?
Porximity to mateirals
Proximity to Materials
Reduces transport costs for raw materials.
eg: Breweries locate near water sources.
What factors influence the choice of business location?
Proximity to competition
Proximity to Competition
Can benefit from a shared customer base.
eg: Clothing retailers locate in shopping districts.
What factors influence the choice of business location?
Nature of Business
Nature of Business
Determines space and infrastructure needs.
eg: Factories need large premises; law firms prefer city centres.
What factors influence the choice of business location?
Infrastructure
Infrastructure
Good transport links improve logistics and workforce access.
eg: Airports attract courier businesses.
What factors influence the choice of business location?
1-Proximity to market
2-Porximity to mateirals
3-Porximity to mateirals
4-Proximity to competition
5-Nature of Business
6-Infrastructure
Q: How does e-commerce influence location decisions?
Lower business costs – Businesses do not need high-street stores.
Smaller premises – Only warehouses and offices may be required.
Remote working – Companies can operate from multiple locations.
Proximity to transport – Key for quick delivery and distribution.
Reliable IT infrastructure – High-speed broadband is essential.
Example: Sweden’s national broadband plan aims for full access to high-speed internet by 2025.
How do laws influence business location?
employment law
Employment Law
Affects pay, conditions, and workers’ rights.
eg: Norway mandates high overtime pay.
How do laws influence business location?
Enviromnetal law
Environmental Law
Controls emissions, waste disposal, and sustainability.
eg: Germany requires businesses to accept unwanted packaging.
How do laws influence business location?
Consumer law
Consumer Law
Regulates product safety and advertising.
eg: Brazil restricts junk food marketing.
Q: Why do businesses choose locations based on regulations?
A:
Developed countries – Strong legal systems, skilled workforce, stable infrastructure.
Developing countries – Fewer regulations, lower costs, but potential ethical concerns.
Q: What is a trade bloc?
A: A trade bloc is a group of countries that reduce trade barriers among themselves.
Q: What are examples of major trade blocs?
EU (European Union) – Free trade and shared economic policies.
USMCA (USA, Mexico, Canada) – North American trade agreement.
ASEAN (Southeast Asian Nations) – Encourages regional trade.
Q: Why do businesses locate in trade bloc countries?
A:
Avoid tariffs and quotas.
Easier access to large markets.
Better supply chain integration.
Example: Businesses in Mexico benefit from USMCA, avoiding high US tariffs.
