Location Factors

Question 1

Define location factors

Answer 1

The issues businesses take into consideration when choosing physical place where business will operate

Question 2

Define price

Answer 2

How much consumers need to pay to purchase a product

Question 3

Define costs

Answer 3

How much businesses spend in order to supply a product

Question 4

Define proximity to the market

Answer 4

How close a business needs to be to its target customers

Question 5

Define availability of raw materials

Answer 5

Ease with which a business can access the supplies it needs in order to produce its goods or services eg farms needs access to fertile land

Question 6

Define labour (location factor skills)

Answer 6

Businesses that require specialist skills may choose to locate in areas that have large numbers of people with those skills

Question 7

Define competition

Answer 7

Some businesses with to be in area of low competition some actually cluster in areas with lots of competition

Question 8

Define costs (location factor)

Answer 8

A businesses physical location can have a major impact on running costs eg city centre= expensive , out of town = lower property values