Location of Production

Question 1

Why is the location of raw materials important when deciding where to locate a business?

Answer 1

If you are closer to the raw materials then transport costs are lowered

Question 2

Why is labour supply important for location?

Answer 2

Having it located in an area of high unemployment means that wages can stay low as people are desiring work

Question 3

Transport?

Answer 3

Ports, airports, rail and road links are helpful for exporting and importing goods

Question 4

Communication links?

Answer 4

Good telephone, internet and postal services are needed in order to keep good communication

Question 5

Location of the market?

Answer 5

It is more effective to be near customers for foot fall etc

Question 6

Government policies?

Answer 6

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

Question 7

Climate?

Answer 7

Certain conditions are needed for certain lines of trade- farming etc