Section 5 - 5.4 location

Question 1

Assisted areas (enterprise zones)

Answer 1

Are regions identified by the government to be suffering from relatively high unemployment and low incomes, so are in need of regeneration three financial

Question 2

Bulk Increasing businesses

Answer 2

Are involved with products that increase weight during the production process, so need to be located near their customers in order to reduce costs

Question 3

Bulk decreasing businesses

Answer 3

Are those that need to locate near the source of raw materials because they are heavier and hence more costly to transport than the final product

Question 4

Clustering

Answer 4

Means that a business locates near other organizations that operate in similar or complementary markets

Question 5

Footloose organization

Answer 5

Is a business that does not gain any cost reducing advantages from locating in a particular location hence the firm can locate in almost any location

Question 6

Industrial inertia

Answer 6

Describes the reluctance to relocate due to the inconvenience of moving. Managers may feel that the potential inconvenience and cost of relocation outweighed the benefits

Question 7

Infrastructure

Answer 7

Infrastructure Is the term used to describe the transportation, communication and support networks in a certain area

Question 8

Insourcing

Answer 8

Is the use of organizations and people resources to accomplish a certain function or task otherwise have been outsourced

Question 9

Location

Answer 9

Refers to the geographical position of a business the location is a crucial one, and depending on both quantitative and qualitative factors

Question 10

Offshoring

Answer 10

Involves relocating business functions and processes overseas the offshore functions can remain within the business or outsource to an overseas organization

Question 11

Outsourcing

Answer 11

Is the practice of transferring internal business activities to an external organization to reduce costs and increase productivity.