8C : location (not fin )

Question 1

define location

Answer 1

location is the site of the busuness

Question 2

what are some factors that may affect business location choice ?

Answer 2

• transport costs

*away from rivel businesses

*land and premise costs

• nearness to the market

Question 3

what ate the supply factors for when choosing a location for a new business.

Answer 3

SUPPLY FACTORS
* costs : the costs of labour , land and energy .
location is important as it can affect the cost of the business e.g. renting a small shop outside town centre is cheaper than the high street

Question 4

what are the demand factors ?

Answer 4

• location : gains sales. an inconvenient location will not attract customers.

some businesses are not reliant on location
e.g. internet companies. geography for this business is not important .

just need internet .

Question 5

what are the benefits of an optimal location for a business ?

Answer 5

• lowest site costs : rent , maintenance
• easy access for staff : easy travel to and from work
• the best access to markets :easy to attract customers , convenient for customers

Question 6

what are the factors that influence a choice to locate abroad ?

Answer 6

• cheap labour : products can be made cheaper abroad
• language barriers : benefits of locating in countries that share the same language
• taxation policy : pay less tax in some foreign countries