location

Question 1

what can location be determined by?
(3)

Answer 1

• access to customers
• access to factors of production
• minimisation of costs

Question 2

what are the 7 key location factors?

Answer 2

• costs
• infrastructure
• market and competition
• labour
• social
• government influence
  -increased choice in international locations

Question 3

what can location costs include?
(6)

Answer 3

• planning permission
• purchasing or rental/ leasing
• refurbishments
• business rates
• labour rates
• transport costs

Question 4

outline the key social factors
(2)

Answer 4

• managers want to live somewhere that suits them and their families e.g good schools
• alternatively managers have commitments to their existing workforce

Question 5

how can the government influence location?

Answer 5

• costs of labour can be affected by the availability of government grants and government taxation policies giving incentives to move to particular regions
• if low costs and suitable land is available the location will be desirable

Question 6

how can labour be a determining factor?

Answer 6

• business are drawn to:
  • the availability of labour
  • low costs of labour
  • good skills of labour

Question 7

1. what makes infrastructure a determining factor?
2. what is economies of concentration/ agglomeration

Answer 7

1. • refers to roads, rail, shipping, and e-commerce
     - the type and quality affects access to markets
2. when a number of businesses in the same or related industries locate close together the be able to gain mutual advantages