Business Location and Relocation Factors

Vocabulary flashcards about factors influencing business location and relocation.

Proximity to Market

Businesses that create large or heavy products locate close to customers to reduce transportation costs.

Proximity to Labour

Businesses needing many workers consider wage costs and worker skills when choosing a location.

Proximity to Materials

Businesses locate close to material sources if materials are difficult to transport or require cheap energy.

Proximity to Competitors

Some businesses locate near competitors for comparison shopping or to capture excess demand.

E-commerce

Allows businesses more flexibility in location decisions by serving national markets remotely.

Trade Blocs

Groups of countries in the same region that enjoy trade without barriers.

Location Factors

Market, Labour, Materials, Competitors, Nature of Business Activity, Internet, Legal Controls, and Trade Blocks.

Relocation Factors

Changes in market, cost of labor, availability of resources, competition, and legal or trade conditions.

Market Proximity Importance

Businesses selling directly to consumers, such as restaurants and salons, need to locate near their markets.

Labour Skill Distribution

Not evenly distributed throughout a country; businesses requiring specific skills must choose areas accordingly.

Cheap Energy Resources

Areas with these resources are attractive to businesses needing them.

Brownfield Sites

Land previously used for industrial purposes; can be attractive due to allocated business development.

Greenfield Sites

Undeveloped land; can be attractive due to allocated business development.

Comparison Shopping

Industries where customers compare options; businesses may locate nearby to attract customers.

Government Influence

Governments can influence location decisions through regulations, incentives, and planning controls.

Online Business Location

Can be located anywhere with internet access.

Traffic Congestion

A location issue for service businesses; customers seek convenient parking alternatives.

Drive-Through Facilities

Developed by fast-food providers to avoid parking problems.

Office-Based Business Location

Should ensure sufficient facilities are available for employees (restaurants, cafes, hotels).

Labour Intensive Manufacturing

Will locate close to a plentiful labor supply, particularly skilled and cheap labor.

Coal Powered Power Stations

Likely to be located close to coal mines or access to coal imports.

Oil Refineries

Often located on the coast to facilitate oil transfer from ships.

Agriculture Land Needs

Vary based on farming type; dairy farmers need grass-growing land, vegetable growers need fertile land.

Fishing Industry Location

Businesses locate on the coast; conditions vary based on fishing type.

Internet Impact

Leads to flexibility in business location due to e-commerce.

Network Speeds and Capacity

Vital for businesses operating in the global market; require continual communication systems.

Local and National Governments

Influence location decisions to avoid congestion, minimize community impact, and encourage development in high-unemployment areas.

Financial Incentives

Low rates, tax breaks, and low rents offered to attract businesses.

Planning Controls

Strict regulations requiring permission to locate a business in a location.

Trade Barriers

Reduce the amount of imports coming into a country.

Stable Ground (Nuclear)

Factor when locating a nuclear power station.

Water Source (Nuclear)

Factor when locating a nuclear power station.

Workforce (Nuclear)

Factor when locating a nuclear power station.

Wage Costs

A factor for business needing large amounts of labour.

Heavy Goods

Businesses making these want to be close to customers.

Service Providers

These have to locate their premises close to their markets.

Rural Location

Businesses such as supermarkets, look to minimise property costs by potentially locating here.

Petrol Station

These would prefer to be located away from competitors.

Retailers

Many of these now operate online due to changing business environments.

Office-based businesses

If businesses employ large amounts of employees, offices need to ensure there are sufficient facilities nearby.

Manufacturers

Chosen location vary; different ones have different needs.

Dairy Farmers

Need land where grass can be grown.

Vegetable growers

Need fertile land.

Fruit growers

Need land that is sandy and well drained.

Tropical fruit

Can only be grown in tropical conditions.

Oyster fisherman

Need to locate close to a oyster reef.

Fixed Premise

Businesses do not need to have these, and can run from anywhere as long as they have internet connections.

Congestion

Local and national governments may try to influence location decisions to avoid this.

Trade

Countries use barriers to reduce the amount of imports coming into a country.

Restaurant

Seafood example requires, proximity to their market.

Relocation Of Businesses

Factors that will influence this include, proximity of market, labour, materials and competitors

Nuclear Plant Location

Building one requires, lengthy consultation process involving the authorities, local communities and the power companies.

Wage Rates

Vary in different regions and in different countries.

Fast-food

Businesses are developing 'drive-through' facilities to avoid parking problems.

Office locations

Head ones are based in large popular cities, improving the image of the business.

Agriculture

Most farmers require a large amount of land for.

Retailers

Serve national markets and be far away from their customers due to the internet.

Foreign manufacturers

Governments use financial incentives to attract these into the country.

Power

Historically, many manufacturers were near sources of.

Land

Some businesses (supermarkets) need large amounts of this to locate buildings, staff car parks and other facilities.

Restaurants

Some businesses will however locate them close to their competitors, important in industries where comparison shopping is important.

Alibaba

Example of an online retailer due to the changing business environment.

Trade Bloc

A group of countries situated in the same region and enjoy trade free barriers.