Business Location Determinants Flashcards
List two reasons why it’s important for a business to get their location right the first time.
- It can imply how well the business will be able to serve customers and earn revenue
- Location decisions are costly and difficult to undo
Geographical influences look at the effects of:
- the natural features of the land
- the population density
- the industries of a region could have upon a business
The benefit of nearness to the raw materials and suppliers is…
The cost of transporting the materials will be less expensive
What is Infrastructure?
Infrastructure is a set of facilities and systems
Why is good infrastructure beneficial to companies?
Good infrastructure makes the production and distribution of goods much smoother
The advancement of telecommunication improves…
How businesses carry out their operations
Why is efficient transportation needed?
It is needed to ensure that there are minimum delays and no loss in revenue.
What is Transportation?
Transportation is the activity that physically connects the business to its supply chain partners
Transportation factors include:
Reliability
Cost
Safety
Consistency
What is the Labour Supply?
This is the amount of workers that are willing to and can work in a job or industry at a given wage rate
List 4 things Labour is affected by.
The population size
Net migration
The wage rate
Entry qualifications
Non-monetary compensation
Unemployment benefits
Labour-intensive businesses need to be near…
A ready supply of labour
List 4 gov. regulations that speak to some aspects of a business
- licensing and regulations of the business
- workers compensation
- payment of taxes
- the withholding of employees wages
The government provides financial support to attract businesses in areas of…
Higher unemployment, where a business will provide jobs to improve the economy
