Business Studies - Location decisions

Descripción

Factors affecting the location decisions of businesses and government influence over location decisions.
Rawan Jurdi
Fichas por Rawan Jurdi, actualizado hace más de 1 año
Rawan Jurdi
Creado por Rawan Jurdi hace casi 8 años
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Pregunta Respuesta
Factors affecting the location of a manufacturing business - production methods - market - Raw materials/components - external economies of scale - availability of labour - government influence - transport and communication - power and water supply - climate
Factors affecting the location of a service sector business - customers - technology -availability of labour - climate - near to other businesses - rent/taxes - customers (direct/no direct contact) - personal preference of the owners
Factors affecting the location of a retailing business - shoppers - nearby shops - customer parking availability/nearby - availability of suitable vacant premises - rent/taxes - access if delivery vehicle - security - legislation
Locating in different countries - new market overseas - cheaper or new sources of materials - difficulties with the labour force and wage costs - rents/taxes considerations - availability of government grants and other incentives - trade and tariff barriers
Why do governments try to influence these location decisions? - to encourage businesses to set up and expand in areas of high unemployment - to discourage firms from locating in overcrowded areas or in sites which are noted for their natural beauty
Types of measures often used by governments to influence where firms locate - Planning regulations will legally restrict business activities that can be undertaken in certain areas - Many governments provide grants or subsidies to businesses to encourage them to locate in undeveloped parts of the country
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