Topic 1.4.2 Business location

Question 1

What factors influence business location?

Answer 1

Proximity to market-Want to be close and have easy access if selling everyday items,proximity to labour-Close to employees-increases satisfaction of the employees,lead to them being more motivated and can increase productivity,proximity to materials-Less transport costs of suppliers,-reduces break-even,proximity to competitors-meets customer need of choice

Question 2

Nature of business activity?

Answer 2

Businesses in primary sector-providing raw material need to be near where raw material are located
Businesses in secondary sector-manufacturing need to be close to transport links of goods
-Near skilled labour
Businesses in tertiary sector-Located close to customers

Question 3

Impact of internet on location(e-commerce)

Answer 3

Businesses are less reliant on physical premises,reduces cost for rent.
Business can reach larger markets around the world on an online website,increasing market share
-Less promotion costs