Location of Production

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  • Created by: JH1010
  • Created on: 12-11-15 21:07
Factors that affect location
Raw materials, labour supply, transport links, economies of concentration, communication, location of market
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Raw Materials
Transport costs - locating near the supply of the raw materials reduces transport costs
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Labour supply
Locating in an area of high unemployment will mean low wages will need to be paid - reduces overall costs
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Transport
The quality of transport links - trains, planes, roads
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Economies of Concentration
This means that suppliers will locate near you therefore reducing the cost of the materials from supplier, their is already skilled labour who have been trained by competitors, customers are aware of your location and come to you
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Communication
The quality of communication links, such as the telephone lines and the speed of the connection to the internet
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Location of market
How far away are consumers, is it convenient for them to get to the business, is it cost-effective for the business to transport goods from production to the customer e.g long distance costs more
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Other cards in this set

Card 2

Front

Transport costs - locating near the supply of the raw materials reduces transport costs

Back

Raw Materials

Card 3

Front

Locating in an area of high unemployment will mean low wages will need to be paid - reduces overall costs

Back

Preview of the back of card 3

Card 4

Front

The quality of transport links - trains, planes, roads

Back

Preview of the back of card 4

Card 5

Front

This means that suppliers will locate near you therefore reducing the cost of the materials from supplier, their is already skilled labour who have been trained by competitors, customers are aware of your location and come to you

Back

Preview of the back of card 5
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