chapter 21 - location decisions Flashcards
1
Q
why is location decision important?
A
it affects the costs, profit, efficiency and the market base exit reaches out
2
Q
factors affecting location decisions of a manufacturing firm
A
- availability of labour
- external economies
- closeness to market
- closeness to raw materials
- production method
- climate
- transport and communication infrastructure
3
Q
factors affecting location decision of a service-sector firm
A
- customers
- climate
- availability of labour
- nearby other business
- technology
- rent/ taxes
4
Q
factors affecting location decision of a retailing firm
A
- car parking availability
- shoppers
- nearby shops
- availability of suitable vacant premises
- rent/ taxes
- access to delivery vehicles
- security
5
Q
factors affecting firms to locate in diff countries
A
- new markets overseas
- cheaper/ new materials
- cheaper/ skilled labours
- rent/ taxes lower
- availability of gov grants
- avoid trade barriers and targets
