Chapter 8: Decisions On Location Flashcards
Proximity to market
Locate close to the market to minimise transportation costs or service providers locate their premises close to the market as services are sold directly to consumers
Proximity to labour
Businesses which make use of labour intensive production where large number of workers are required may be located in regions where labour is very cheap
Proximity to materials (extraction)
Premises of primary sector businesses locate close to their resources where raw materials are present in great quantities, or businesses requiring large amounts of energy might move to regions where energy prices are low
Proximity to materials (land)
Large businesses which require large areas of land set up in areas where premises are cheap & business rates are low
Brownfield sites
Areas of land that were once used for urban development
Greenfield sites
Previously undeveloped areas of land, usually on the edges of towns & cities
Proximity to competitors
Service providers might locate in areas where competition is minimised, while others choose locations where competitors are concentrated where comparison shopping is popular
Businesses providing services
Locate in areas where parking facilities are available or locate in specialist shopping areas which are easily accessible by a large number of consumers
Office- based businesses
Might want to locate in large popular cities so employees have sufficient facilities available
Manufacturing & processing
Labour intenisve manufacturing might locate close to cheap & skilled labour, while manufactures that need large areas may choose locations where land is cheap & there is lots of space
Agriculture
Farmers might move to different areas depending on what they are growing
Impact of internet
Online businesses can reach a global market & have more flexibility when choosing locations. Internet connection however is vital
Reasons for legal controls
To avoid congestion, minimise impact businesses might have on local communities, encourage manufactures to locate where unemployment is high (improves job distribution), to attract foreign manufacturers into the country
Assisted areas
Areas that are designated by a government as having economic problems & are targeted to receive support in a variety of forms
Viability studies
Careful study of how a planned activity will work, how much it will cost & what income it is likely to generate
