1.4 Decisions on location

Proximity to market

Large products- close to customer, services- close to consumer

Proximity to labour

Low wage, skilled workers

Proximity to materials

Close to hard to transport materials, lots of land, cheap property/low tax

Proximity to competitors

Some want little competition, some close to competition for comparison shopping, catching excess demand

Services location

Need easy/cheap access to facilities, parking

Office based location

Near restaurants for employees

Manufacturing

Close to resources, cheap location

Why does online shopping affect location

Flexibility, no need for fixed location

Why does legal control affect location?

They need to locate where unemployment is high, minimise impact on locals and environment

What is a trade bloc?

a group of countries that have agreed to trade under same terms

What do trade barriers include?

Tariffs, quotas(limits quantities of goods)

Main factors influencing location decisions

• proximity to market, labour, materials and competitors

• Internet

• Legal controls/ trade blocs