Location

Question 1

Define Location?

Answer 1

A geographical site from which a business operates.

Question 2

Define Relocation?

Answer 2

When a business moves from 1 site to another.

Question 3

Give 2 factors affecting the location of a manufacturing business?
(6 Reaons)

Answer 3

Availability of labour - suitable labour or a place with people who have relevant skills, schools and hospitals, close to transportations (I.e. roads, airports, buses), cheap rent to increase profits, good source of resources (raw materials), close to suppliers and ancillary firms (I.e. electricity, water source)

Question 4

Give 2 factors affecting the location of a tertiary business?
(3 Reasons)

Answer 4

Population tastes/fashions (Market), close to other linked businesses, transportation links.

Question 5

Give 2 reasons as to why a business would want to re-locate?

5 Reasons

Answer 5

Cheaper rent, to avoid/take advantage of competition, more suitable labour, closer to suppliers, better transportation links.

Question 6

Give 2 reasons as to why a business would want to re-locate overseas?
(6 Reasons)

Answer 6

Cheaper labour, better market conditions / enter a new market, closer to suppliers, government incentives, lower tax rate, weak labour laws (lower minimum wage).

Question 7

Give 2 problems with re-locating overseas?

4 Reasons

Answer 7

Language barriers, lack of local knowledge about tastes/fashions, laws (different working hours, right of employees, minimum wage rate), different cultures/work ethics.

Question 8

Give 2 ways in which a government can influence business location decisions?
(4 Reasons)

Answer 8

to reduce unemployment, move out of congested cities, prevent destruction of areas of high importance (I.e. Historic buildings), stimulate local economic growth (especially in areas where de-industrialisation has occurred).