Unit 1.5 - Business location

Question 1

Main locational factors (5)

Answer 1

Location of raw materials
Labour supply
Competition 
Location of the market - customers
Costs

Question 2

Importance of raw materials location (2)

Answer 2

Lower distribution costs

Possible environmental benefits

Question 3

Importance of labour supply on location (3)

Answer 3

High unemployment means low wages
Good selection of workers to choose from
Educational/training facilities

Question 4

Importance of competition on location (3)

Answer 4

Could decrease sales
May be able to get skilled workers as there are already businesses there
Suppliers and customers are aware of this area

Question 5

Importance of market on location (3)

Answer 5

Lower transportation costs
May need to be easily accessible - passing trade
Internationally to reduce costs - transport/tax

Question 6

Importance of cost on location (3)

Answer 6

Cost of labour varies in different regions/countries
Renting/buying costs varies in different areas
Government support - grants/lower taxes