Factors Affecting Project Location Flashcards
What is the location of a project?
It is the place where a business or project is situated, determined by factors such as costs, accessibility, and infrastructure.
Why is project location important?
It influences operational efficiency, costs, accessibility, and long-term success.
What is the main objective of choosing a project location?
To minimize costs and maximize benefits for the business.
Name three major factors influencing project location.
Closeness to markets, availability of raw materials, and government incentives.
Why is closeness to markets critical for project location?
It reduces transportation costs for delivering goods to customers, especially for perishable products.
How does access to raw materials influence location decisions?
Projects near raw material sources can reduce transportation costs, especially for bulk materials like steel or chemicals.
Why is skilled labor availability a significant factor in project location?
Industries requiring specialized skills need access to a skilled workforce, while others may seek locations with affordable labor.
How do communication links affect project location?
Good infrastructure, like IT and telecommunication, ensures efficiency and global competitiveness.
What role does waste disposal play in project location decisions?
Industries producing significant waste, such as chemical plants, require facilities for safe disposal or recycling.
How do government incentives attract businesses to certain locations?
Incentives like tax breaks, subsidies, and grants reduce costs, making locations more appealing.
What is a footloose business?
A business that can operate almost anywhere because it is not tied to specific location factors.
Define industrial inertia.
When a business remains in a location even after the original reasons for locating there are no longer relevant.
How does the availability of power influence project location?
Reliable power ensures uninterrupted operations, especially for energy-intensive industries.
Why are good road networks crucial for project location?
They facilitate the efficient transportation of raw materials and finished goods, reducing costs.
How do railway systems affect project locations?
Railways provide cost-effective transport for raw materials and finished goods, influencing the growth of towns along rail routes.
