Business location

Question 1

Introduction

Answer 1

Location is one of the most important factors for success

A well-placed location attracts customers and the right employment

Question 2

Labour regulations

Answer 2

Refer to all the laws and restrictions on how to employ, dismiss workers
Some regions have lower minimum wages than others
Some regions have laws about the number of hours the workers are allowed to work

Question 3

Environmental factors

Answer 3

Refer to all the restrictions and laws places on certain regions in terms of what is allowed in a given government
Some regions have strict pollution and dumping laws
Some regions have adequate natural resources and others not

Question 4

Transportation

Answer 4

Transportation is essentially for the supplier to obtain raw materials for workers to get to and from work and for the distribution of the final product.
Transport costs must be reasonable
The available roads must be in good condition

Question 5

Infrastructure

Answer 5

Refers to all the networks, roads, water and electricity and sewage services available
There must be a sufficient supply of water that is suitable to be used
There must be a sufficient electricity supply that is cost effective

Question 6

Climate

Answer 6

Climate change and patterns of rainfall, drought, snow and wind can affect certain businesses
The type of climate required for a particular business must be considered
How harsh hot or cold conditions will affect the business must be considered