Location for Businesses

Factors that affect where a business locates etc.

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  • Created by: Rebecca
  • Created on: 25-05-11 14:34
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Key Terms
Protectionist Measure Government policy aiming to protect businesses from foreign competition
Import A good that is brought into a country from abroad
Tariff A tax on the goods a foreign business imports
Quota A limit on the number of goods a foreign business can import
Government Incentives When a government tries to encourage investment in an area through
offering reduced tax, grants, fewer restrictions etc. to provide
employment and encourage regeneration of an area.
Factors that affect location:
Relocating Overseas: when a business moves the manufacturing process abroad
Advantages Disadvantages
Cheaper labour Different rules and regulations
Cheaper resources Communication problems e.g. language
barrier -> diseconomies of scale
Access to wider range of resources
Expense of relocating
Avoid protectionist measures
Legalities may require employment of
Less health and safety lawyer, increasing costs.

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Financial incentives
International Expansion: when the business sells products in foreign markets
Advantages Disadvantages
Spreads risks so gains in one market can Customers abroad have different tastes ->
offset losses in another. Lower risk changing product -> increases costs.
encourages investment.…read more


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