Paper 2 business location

Question 1

what big change has effected where a business locates

Answer 1

globalisation

Question 2

what factors influence location of a business (6)

Answer 2

cost
government costs
proximity to raw materials
proximity to labour
interdependance on other businesses
proximity to market

Question 3

what factors will effect cost of production and how (2)

Answer 3

cost of premises and infastructure (roads railways ICT)

Question 4

how does government influence location

Answer 4

sometimes want to encourage business to set up in certain areas- enterprise zone - offer reduced business rates in these areas and other benefits

Question 5

how does proximity to market effect where a business locates (3)

Answer 5

need to be near to potential customers,
consider competition already there
will product be needed in that area

Question 6

why do businesses need to be near to customers

Answer 6

to reduce transport costs

Question 7

why do businesses need to be close to raw materials

Answer 7

keep transport costs down when getting materials to manufacturer and taking away waste
reduce carbon footprint