business location 1.5

topic 1

what is location

site or sites on which the buisiness is based

why is the location important

it depends on the:

cost- amount varies depending on area

sales- whether the product is more popular in some areas and less in others

image- where the product is produced can have a great impact on the business’s image

factors influencing location

• type of business

• proximity to market

• competitors

• availability to raw materials

• availability and cost of labour

• transport links

• technology

• costs

• overseas location.

proximity to market

how close business is to custimes

raw materials

prducts such as oil steel cotton which asre used in the production of goods

advanatges of location overseas

cheap labour

acces to raw material

financial incentives from foreign governments

avoids protectionists measure by foreign governments

market overseas may be selling fast

disadvanatges of location overseas

different rules and regulations in other countries

customers may have different taste

environmental costs

problems with supply chains

what are preotectionists measures

policies that governments use to protect their own businesses against foreign competition

what is a tariff

tax on foreign goods imported into the country

what are imports

goods and services purchased by overseas consumers of businesses

what is a quota

limit on the amount of foreign good imported into a country