descisions on location Flashcards
how does proximity to the market,
Businesses which make large producs and require heavy machinery may locate nearer to manufacturing plants or raw materials, such as car manufacturers, whereas hari salons, restaurants would locate it towns and busy cities, close to the market
how does proximiy to labour affect the the location of a business
Businesses may look at their manufacturing costs and decide if the wages may be too much to handle or if a large or specialised labourforce is required to handle production, for this reason businesses may look at transport costs, latetime and the cheapness of labour and locate there, for example most companies in the USA and EU have relocated to Mexico and South Asia becuase labour is cheap there
how does proximity to materials affect the location of a business
Businesses may chose to locate near raw materials because of transportation costs and viability, for example some businesses use a lot of water so may locate near a river, other chemical producers may locate in places where energy prices are low for example most companies are relocating to the USA due to low energy prices derived from oil and fracking
how does proximity to competitors affect the location of a business (2)
- Businesses may avoid places where such businesses already exists such as hair salons
- however other businesses may deliberately locate near their competitors , this might be important to businesses where comparison is important, or where businesses want to catch the excess demand
what are brownfield sites
areas once used for urban development
what are greenfield sites
previously undeveloped areas of land usually on the outskirts of towns and cities
what is fracking
injecting liquids at high pressures into subterreanian rocks and boreholes, in order to force open existing fissures and extract oil and gas
how does services affect business location
businesses may locate due to ease of access for the consumers, for example businesses may not want to locate where these is lots of congestion and no parking, this would force their customers to find alternatives elsewhere, businesses may locate in malls and shopping centres where there is a large market and parking lots
how do office based businesses have to consider location
office based businesses like consultancies or finincial services tend to locate for the benefit of their employees to boost employee motivation and output, they can locate in towns and cities with cafes, restuarants, luxury services and theatres to ensure their employees have a wide range of services to choose from, locating businesses in hotspots such as london and paris can also boost the public profile of a businesses
how do manufacturing and processing businesses consider location
different types of manufacturers have dfferent needs, for example manufacturing that is labour intensive will need to locate in areas of cheap labour. companies that are material intensive need to locate near their materials or transportation centres and lower the cost of transportation,
how does agricultural practises choose location
primary sector workers need large peices of land to maximise the yield of their crops, farmers tend do have large fields but the type of location matters aswell, for example dairy farmers need land where grass can grow, whereas apple, pair and other tree farmers need sandy and drained land, fisherman need to also locate near water howeer, different fish live in different enivornments, so oyster farmers would need to locate near oyster reefs where the sea meets the river
how does internet impact the location of a business
internet has had a big impact on business causing a high increase in e commerce and online trading, for this reason enterpreneus have a lot more flexibility in where they can locate a business, for example a retailer can sell online but be located in a warehouse outside a motorway, and business that are even more flexible can operate anywhere with an internet connection
how do legal controls affect business location (5)
- to avoid conjestions of already busy places
- to avoid business location in places where it impacts negatively, for example petrochemical plants in parks and noisy nightclubs in residential areas
- to create incentives for business to locate in economically struggling areas
- businesses can create areas where there are tax breaks, low rent, and other things so that area can be boosted economically
- to attract foreign invenstors
what is assisted areas
areas that are struggling economically where the government creates incentives for business to be active
what are trade blocs
a group of countries situated in the same region where they enjoy trade free of barriers
