Component 1 Booklet 6 Flashcards
1
Q
Initial location-
What issues could a business face when trying to find their first business location?
A
- not enough money
- level of risk-crime
- competitors in the same area
- resistance from locals
2
Q
Relocating-
What could cause businesses to relocate?
A
- better competitors in the same area
- lack of customers
- security issue
- expansion-more space required to grow
- risks in current location(weather)
- May move abroad to benefit from lower costs
3
Q
Global expansion-
How can global expansion help businesses?
A
- more customers
- lower tax and less legislation,lower wages
- opens up opportunities
- reduced transport costs if they set up in a country they are already selling to
4
Q
What are the factors a business will consider before making a location decision?
A
- costs
- raw materials and suppliers
- labour
- government influences
- the market and competition
- social reasons
- infrastructure
5
Q
What are the influences on the choice of international location?
A
- maximising economies of scale
- costs of international transport
- political factors
- taxation levels/transferring cost
- labour costs
- freedom from restrictions
6
Q
What is a Multinational organisation?
A
Businesses that are based and produced in more than one country
7
Q
What is a footloose business?
A
Ones that move from one location to another-basing themselves where ever fits their needs
