decisions on locations Flashcards
what are brownfield sites
areas of land that were once used for urban developments
what are greenfield sites
remote areas on the outskirts of a town
what are trade blocs
groups of countries located in the same region that join together to abolish trade barriers
why should businesses locate close to their market
to reduce transport costs and increase profits, especially for large and heavy products
why should businesses locate close to their labor
labor-intensive businesses should be located where labor is cheap to reduce costs
why should businesses locate close to their materials
to reduce transportation costs, especially for businesses that purchase large amounts of raw materials
why might businesses locate close to competitors
large businesses may do so to attract consumers, while small businesses may locate away to reduce competition
how does the nature of the business affect its location
service businesses need good access for consumers, office-based businesses need residential areas for workers, manufacturing depends on factors like labor and raw materials, and agriculture needs large plots of land
how has the internet impacted business locations
businesses can now sell products worldwide without a physical premise, reducing location costs through e-commerce
how do legal controls affect business location decisions
governments may intervene to minimize environmental impact, encourage business in high unemployment areas and offer financial incentives for development
why do businesses prefer to locate within trade blocs
to avoid trade barriers like tariffs and quotas, which reduces production costs and increases profits
define tariff
tax that is imposed on imports
define quotas
physical restriction of the supply of imports
