Location of Production Flashcards
Why is the location of raw materials important when deciding where to locate a business?
If you are closer to the raw materials then transport costs are lowered
Why is labour supply important for location?
Having it located in an area of high unemployment means that wages can stay low as people are desiring work
Transport?
Ports, airports, rail and road links are helpful for exporting and importing goods
Communication links?
Good telephone, internet and postal services are needed in order to keep good communication
Location of the market?
It is more effective to be near customers for foot fall etc
Government policies?
Multinational companies are often paid to locate in their countries to create more jobs
They get tax breaks or subsidies to make the offer more appealing
Climate?
Certain conditions are needed for certain lines of trade- farming etc
