AS business studies location choices

Main factors influencing business location

·       Technology

o   With the development of communication technologies such as mobile phones, personal computers and the internet, it is becoming increasingly feasible for people to work from home or in locations that are away from centralised office, distribution or production bases. This types of working arrangement is known as teleworking.

·       Cost of factors of production

o   Businesses often try to find least-cost site (the business location that allows a firm to minimize its costs (and hence its selling price)).

o   Land costs

o   Labour costs

o   Transport costs

·       Infrastructure

o   The network of utilities such as transport links, sewerage, telecommunications systems…