4.4 Location decisions Flashcards
What factors influence businesses to look for new locations?
New business
What is the effect of job production on the location of a manufacturing business?
The business will be small
How does large-scale production influence location decisions?
Businesses will prefer to be near suppliers to reduce transportation costs for raw materials.
How does market proximity affect location decisions for manufacturing businesses?
Businesses may locate near markets for heavy products
What role does the transportation of raw materials play in manufacturing location decisions?
High transportation costs for heavy raw materials may make it important to locate near suppliers.
What are external economies of scale in manufacturing?
When two firms support each other
How does the availability of labor affect the location of manufacturing businesses?
Skilled labor requires proximity to skilled populations
How does government influence location decisions for manufacturing businesses?
Governments offer grants or subsidies to encourage businesses to locate in areas with high unemployment.
Why is transport and communication important in location decisions?
Proximity to transport systems reduces costs and time for delivery and imports/exports.
How do power and water supply affect manufacturing location decisions?
Some processes require reliable access to power and water for continuous production.
What impact does climate have on manufacturing location decisions?
Climate affects the types of products produced and the working environment.
How does customer proximity affect the location of service businesses?
Services requiring direct contact must be located near customers; for others
What is the impact of technology on the location of service businesses?
E-commerce has reduced the need for physical proximity to customers.
How does labor availability affect the location of service businesses?
Labor-intensive businesses need locations with easily accessible workers
Why does climate matter for service businesses?
Climate affects customer preferences and types of services offered.
What is the importance of being near other businesses for service businesses?
Service businesses serving large companies must be located nearby for easy access.
Why do service businesses consider rent and taxes when choosing a location?
Services with no direct customer contact can locate in areas with low rent and taxes.
What factors are important for retail businesses when choosing a location?
Retailers seek high-traffic areas
Why is parking availability important for retail businesses?
Convenient parking encourages customers to visit the shop.
What is the effect of suitable premises availability on retail location decisions?
If suitable premises are unavailable
Why do retail businesses need access to delivery vehicles?
Retailers require access to transport hubs for easy deliveries.
How does rent and taxes affect retail location decisions?
High-demand areas have high rent
How does security impact the location of retail businesses?
Locations prone to theft may reduce business chances and increase insurance costs.
What is the impact of legislation on retail business location decisions?
Legal restrictions may prevent business activities in certain areas
