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location production
11 factors influencing location
Question | Answer |
---|---|
location of raw materials | locate near to the source of raw materials, to lower the cost of transporting |
location of the market | locate near to customers so people can easily get to the firm |
labour supply | locate where they can find workers, like locating in high unemployment areas results in low wages |
transport and communication links | close to sea ports or airports if they export or import. or, good road and rail links to transport around the country. |
land and premises | suitable for required size and facilities. building new premises will require planning permission |
economies of concentration | being near competitors means high concentration of similar skilled labour, meaning customers know where to go. suppliers will want to locate near this concentrated area, reducing transport costs |
government policy | governments pay big multinationals to locate in their country. regional policy gives tax breaks to firms locating in areas of high unemployment |
history and tradition | certain areas are historically linked with certain industries, because there were advantages to businesses locating in these areas. if the advantages still exist, then similar businesses will follow tradition |
industrial inertia | firms who have been in the same place for a long time will be put of moving by high costs of relocation |
personal reasons | somewhere nice to live |
climate | important in agriculture |