Explain 3 reasons why business location is important?
1. Costs; rent or buying premises influences costs, 2. Sales; this may influence if a business is reaching enough customers 3. the location of production of a companies items may effect the brands image.
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Factors affecting businesses location: Type of business?
The specific type of business will influence it's location as it may not reach enough consumers if located far away from them.
This may be an advantage or disadvantage as some businesses will aim to find employees nearby but some may avoid area's of high competition as sales may be harder to raise if it's a small firm.
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Factors affecting businesses location: Location of raw matierials?
This depends of the business but most will want to stay neaby to their raw matierials to reduce transport costs and enviromental impact.
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Factors affecting businesses location: Labour supply?
Some firms will aim to locate near area's of high unemployment so that wages won't be too high and there will be a greater range of workers to choose from.
Many businesses will aim to locate in area's of high technological communication as a lot of work is done from home/ on the internet and depend on good technology.
This includes all the costs a business can face from an area; taxes, rents, labour/wages, transport etc.
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Name 4 advantages of locating overseas's?
some area's may have cheaper labour, access to resources that aren't avaible in the UK, financial incentives from foriegn goverments, increased market overseas.
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Name 2 disadvantages of locating overseas?
Legislation oversea's may be different (wages, regulations, tarrifs etc) and customer taste's may be different so products will have to be adapted/ changed.
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Other cards in this set
Card 2
Front
Factors affecting businesses location: Type of business?
Back
The specific type of business will influence it's location as it may not reach enough consumers if located far away from them.
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