Topic 6-Business Location

Question 1

Define location

Answer 1

The is where is business is situated.The decision has a direct influence the revenue and costs of the business

Question 2

Infrastructure

Answer 2

These are basic facilities (e.g. bulidings, roads and power supplies) needed for the operation of a society or enterprise.Transport facilities are particularly important for firms

Question 3

Employment

Answer 3

The location of a business in a particular are can have important economic benefits in terms of providing jobs.This can have a positive multiplier effect on the area

Question 4

Environment

Answer 4

The location of a business has important implications in terms of the effect on the landscape,wildlife and pollution

Question 5

Factors to take into account when locating a business

Answer 5

• Proximity to the market.This will influence the amount of revenue coming into the business
• Size of land and ability to expand.If the business is successful you may want to expand.This may not be possible on the present site which would require you to relocate which in turn would be very expensive
• Close to a port or airport.This will be particularly important to a firm that either gets raw materials imported or exports finished goods.

Question 6

Social and Environmental considerations in production and its location

Answer 6

• Employment
• Increased traffic
• Global warming and pollution