Location Flashcards
What does a firm have to think about when choosing its location?
have to compromise between where it is cheapest and where it would generate the most income.
How does the Location of Raw Materials influence Location?
If your Raw Materials are located nearby, it will lower transport costs.
How does Labour Supply influence Location?
If location is close to an area of high unemployment, you can keep wages low.
There will also be a good selection of people to choose from.
How does Competition influence Location?
If near competitors you may lose sales or gain skilled labour.
How does the Location of the Market influence Location?
If firm pays more to transport their finished product than their raw material, they would find it cheapest to locate near customers.
How does Cost influence Labour?
Cost of Labour varies in different countries.
How much firm can afford to spend on renting or buying.
Government helps lower their total expenditure.
