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location production

11 factors influencing location

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
Created by: jirwin



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