Unit 5.4: Location Flashcards
Assisted areas (or enterprise zones)
Are regions identified by governments to experience relatively high unemployment and low incomes, so are in need of regeneration through financial assistance
Bulk increasing industries
Are involved with products that increase in weight during the production process (i.e raw materials weigh less than the final product), so need to be located near their customers to reduce costs e.g hand made furniture
Bulk reducing industries
Are those that need to locate near to the source of raw materials because they are heavier and hence more costly to transport than the final product
Clustering
Means that a business locates near other organisations that operate in similar or complementary markets
Footloose organisation
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. (Typically online businesses)
Industrial inertia
Describes the reluctance to relocate due to the inconvenience of moving even when the competitive advantages for the location no longer exist
Infrastructure
is a term used to describe the transportation, communication and support networks in a certain area
Insourcing
Is the use of an organisation’s own employees and resources to accomplish certain functions or tasks
Location
Refers to the geographical position of a business. i.e where it is sited
Offshoring
Is an extension of outsourcing, which involves relocation part or all of business functions and processes overseas
Outsourcing (or subcontracting)
Is the practice of transferring internal, non-core business activities to an external organisation in order to reduce costs and increase productivity
Reshoring
Is the reverse of offshoring i.e the transfer of business operations back to their country of origin
Subcontractors
Are outsourced firms that undertake non-core activities for an organisation. They are used for their expertise and the cost advantages they bring such as accountancy services
