4.4 Location

Question 1

11 Factors affecting location (physical goods)

Answer 1

Fresh deliveries
Reduce transportation costs
Low rent
Brand image (from location)
Large customer base
Owners preference
Subsidies + grants (from gov)
Less restrictions
Access to cheap labor
Access to cheap raw materials
Climate

Question 2

7 Factors affecting location for services

Answer 2

Customer base
Can business be run online (technology)
Availability of labor
Climate (eg - tourism)
Nearness to other businesses
Rent/tax
Owners personal preference

Question 3

7 factors affecting location for retail

Answer 3

Shoppers
Nearby shops (to poach customers)
Parking for customers close by
Suitable vacant premise
Rent/tax
Access to delivery vehicles
Security

Question 4

Why businesses locate in diff countries

Answer 4

New market overseas
Cheaper raw materials
Cheaper skilled workers
Rent/tax are lower
Government grants/ incentives
Avoid trade barriers and tariffs

Question 5

Gov influence location by

Answer 5

to encourage businesses to set up and expand in areas of high unemployment and under-development. Grants and subsidies can be given to businesses that set up in such areas.

to discourage firms from setting in areas of that are overcrowded or renowned for natural beauty. Planning restrictions can be put into place to do so.