Business Location Flashcards
What factors influencing business location?
1) Proximity to the market:
How close the business is to its customers.
2) Availability to raw materials:
This is important for manufacturing businesses as they need quick and inexpensive access to products such ad oil, steel and cotton which are used in the production of other goods ( raw materials required for their product).
3) Suitable supplies of labour:
Businesses seek to locate where there are supplies of labour with the required skills and where wages are as low as possible.
4) Competition:
Sometimes businesses locate near to competitors as they know that is where customers go to buy a certain product.
5) Costs:
Some businesses aim to keep costs as low as possible so they locate in the cheapest places possible.
What two changing factors have an impact on business location?
1) Technology:
Technology has freed up many businesses from particular locations
2) Globalisation:
Many products are now sold internationally. Businesses often locate overseas because wages are much lower. Such businesses may also be selling to consumer in other countries, so they locate part of their business there.
What is globalisation?
The trend for markets to become worldwide in scope.
