Location Flashcards
What is location ?
Location is the area a business decides to set up its main office or stores
Can you explain the factors that influence bigger business location decisions?
Utilities, Product Appeal, Budget, Target Audience, Population, Size, Demand, Convenience, Access, Climate, Conditions, Suitability, Cheap, Wealth of area, Raw Materials, Completion, Parking Available, Cost of site, Availability of labour, Skills of local people, labour costs, Work, Price, Crime,
Why is location important for an international business?
Location is important for an international business as it allows for the business to make the business a success depending where it is eg if a business is in central London it will do well compared to a business in rural areas.
What is globalisation, off-shoring and a multinational ?
Globalisation is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange.
Off-shoring is the practice of basing some of a company’s processes or services overseas, so as to take advantage of lower costs.
Multinational is a company operating in several countries.
Analyse the positives and negatives of being a multinational and locating overseas ?
Multinational overseas is good as you can access more customers and more markets and have bigger market share in different countries. Also going overseas is good as it’s potentially cheaper and workers are more productive.
But in contrast negatively going overseas can cost the business and can cause the business to go into liquidity. Also going overseas may cause the workers to have too much workload
