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    Location Decisions: Textbook, Chapter 20 (PG 241-256)

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    Vincent Churchill
    This document discusses factors that affect the location decisions of manufacturing, service, and retailing businesses. It identifies key factors like access to materials, markets, labor, transportation and utilities. The document also discusses considerations for locating operations in different countries, such as access to new markets and resources, as well as legal and economic issues. Finally, it notes that governments try to influence firm locations through incentives and regulations to manage development.

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    © All Rights Reserved
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    Location Decisions: Textbook, Chapter 20 (PG 241-256)

    Uploaded by

    Vincent Churchill
    37 views9 pages
    This document discusses factors that affect the location decisions of manufacturing, service, and retailing businesses. It identifies key factors like access to materials, markets, labor, transportation and utilities. The document also discusses considerations for locating operations in different countries, such as access to new markets and resources, as well as legal and economic issues. Finally, it notes that governments try to influence firm locations through incentives and regulations to manage development.

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    Location Decisions

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    This document discusses factors that affect the location decisions of manufacturing, service, and retailing businesses. It identifies key factors like access to materials, markets, labor, transportation and utilities. The document also discusses considerations for locating operations in different countries, such as access to new markets and resources, as well as legal and economic issues. Finally, it notes that governments try to influence firm locations through incentives and regulations to manage development.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    37 views9 pages

    Location Decisions: Textbook, Chapter 20 (PG 241-256)

    Uploaded by

    Vincent Churchill
    This document discusses factors that affect the location decisions of manufacturing, service, and retailing businesses. It identifies key factors like access to materials, markets, labor, transportation and utilities. The document also discusses considerations for locating operations in different countries, such as access to new markets and resources, as well as legal and economic issues. Finally, it notes that governments try to influence firm locations through incentives and regulations to manage development.

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    © All Rights Reserved
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    LOCATION
    DECISIONS

    Textbook, Chapter 20 [pg 241-256]

    Name: ……………………………………………

    Class: ……………………

    This  example  is  downloaded  from  www.mybusinessstudies.com.    A  comprehensive  


    website  for  IGCSE  Business  Studies,  Business  news,  Study  Techniques  and  lots  of  
    resources  for  teachers  and  sudents.  
     
     

    Learning outcomes:
    • Identify factors affecting location decisions of manufacturing, service
    and retailing businesses.
    • Discuss factors that a business could consider when deciding which
    country to locate operations in.
    • Identify role of legal controls on location decisions.
    • Recommend and justify an appropriate location for a business in
    given circumstances.

    This  example  is  downloaded  from  www.mybusinessstudies.com.    A  comprehensive  


    website  for  IGCSE  Business  Studies,  Business  news,  Study  Techniques  and  lots  of  
    resources  for  teachers  and  sudents.  
     
     

    Factors affecting the location of a manufacturing business

    1) Production m________ and location decisions.


    • The i_____________ of nearness of components.
    eg: Using job production method, the business most likely operate in
    a s_______ scale, therefore the influence of the of nearness
    components will be less importance compare to flow production.

    2)  M__________.    
    • The company able to sell the products faster to customers.

    3)  R___________________.    
    • The company able to save transportation cost. Supplier also able to
    deliver the raw materials/ components to the factory on time.

    4)  E___________________.    
    • The company able to save transportation cost. Supplier also able to
    deliver the raw materials/ components to the factory on time.

    5) A________________.
    • Labours and skilled workers must be available near the factory.

    6) G__________________.
    • If an area has high unemployment, the government may give money
    to businesses to locate in that area.

    This  example  is  downloaded  from  www.mybusinessstudies.com.    A  comprehensive  


    website  for  IGCSE  Business  Studies,  Business  news,  Study  Techniques  and  lots  of  
    resources  for  teachers  and  sudents.  
     
     

    7) T__________________.
    • Products are able to transport to the market faster if the factory is
    located in a place accessible to a transport system.

    8) P___________________.
    • Availability of power and water supply is important for a factory to
    ensure the production process can be carried out.

    9) C________________.
    • This will not influence most manufacturing businesses. For instance,
    Silicon Valley in the US has a very dry climate which aids the
    production of silicon chips.

    Factors affecting the location of a service sector business

    1) C_______________.
    Explanation: ____________________________________________
    ______________________________________________________
    ______________________________________________________.

    2) P_____________________.
    Explanation: ____________________________________________
    ______________________________________________________
    ______________________________________________________.

    This  example  is  downloaded  from  www.mybusinessstudies.com.    A  comprehensive  


    website  for  IGCSE  Business  Studies,  Business  news,  Study  Techniques  and  lots  of  
    resources  for  teachers  and  sudents.  
     
     

    3) T_______________.
    Explanation: ____________________________________________
    ______________________________________________________
    ______________________________________________________.

    4) A_______________.
    Explanation: ____________________________________________
    ______________________________________________________
    ______________________________________________________.

    5) C_______________.
    Explanation: ____________________________________________
    ______________________________________________________
    ______________________________________________________.

    6) N_______________________.
    Explanation: ____________________________________________
    ______________________________________________________
    ______________________________________________________.

    7) R_______________.
    Explanation: ____________________________________________
    ______________________________________________________
    ______________________________________________________.

    This  example  is  downloaded  from  www.mybusinessstudies.com.    A  comprehensive  


    website  for  IGCSE  Business  Studies,  Business  news,  Study  Techniques  and  lots  of  
    resources  for  teachers  and  sudents.  
     
     

    Factors affecting the location of a retailing business

    1) S_______________.
    Explanation: ____________________________________________
    ______________________________________________________
    ______________________________________________________.

    2) N_____________________.
    Explanation: ____________________________________________
    ______________________________________________________
    ______________________________________________________.

    3) C_________________________.
    Explanation: ____________________________________________
    ______________________________________________________
    ______________________________________________________.

    4) A_____________________.
    Explanation: ____________________________________________
    ______________________________________________________
    ______________________________________________________.

    5) R_____________________.
    Explanation: ____________________________________________
    ______________________________________________________
    ______________________________________________________.
    This  example  is  downloaded  from  www.mybusinessstudies.com.    A  comprehensive  
    website  for  IGCSE  Business  Studies,  Business  news,  Study  Techniques  and  lots  of  
    resources  for  teachers  and  sudents.  
     
     

    6) A_____________________.
    Explanation: ____________________________________________
    ______________________________________________________
    ______________________________________________________.

    7) S_____________________.
    Explanation: ____________________________________________
    ______________________________________________________
    ______________________________________________________.

    8) L_____________________.
    Explanation: ____________________________________________
    ______________________________________________________
    ______________________________________________________.

    Locating in different countries

    1) New markets overseas.


    Explanation: ____________________________________________
    ______________________________________________________
    ______________________________________________________.

    2) Cheaper or new sources of materials


    Explanation: ____________________________________________
    ______________________________________________________
    ______________________________________________________.
    This  example  is  downloaded  from  www.mybusinessstudies.com.    A  comprehensive  
    website  for  IGCSE  Business  Studies,  Business  news,  Study  Techniques  and  lots  of  
    resources  for  teachers  and  sudents.  
     
     

    3) Difficulties with the labour force and wage costs.


    Explanation: ____________________________________________
    ______________________________________________________
    ______________________________________________________.

    4) Rents/ taxes consideration.


    Explanation: ____________________________________________
    ______________________________________________________
    ______________________________________________________.

    5) Availability of government grants and other incentives.


    Explanation: ____________________________________________
    ______________________________________________________
    ______________________________________________________.

    6) Trade and tariff barriers.


    Explanation: ____________________________________________
    ______________________________________________________
    ______________________________________________________.

    This  example  is  downloaded  from  www.mybusinessstudies.com.    A  comprehensive  


    website  for  IGCSE  Business  Studies,  Business  news,  Study  Techniques  and  lots  of  
    resources  for  teachers  and  sudents.  
     
     

    The role of legal controls on location decisions

    Governments try to influence firm location decision. This is to:


    • encourage businesses to set up and expand in high unemployment
    area.
    • discourage firms from locating in overcrowded areas of places which
    bring pollution to the nearby residents.

    Methods used by the government to influence whre firms locate:


    1) Planning regulations
    2) Provide grants and subsidies to businesses to encourage them to
    locate in underdeveloped parts of the country.

    This  example  is  downloaded  from  www.mybusinessstudies.com.    A  comprehensive  


    website  for  IGCSE  Business  Studies,  Business  news,  Study  Techniques  and  lots  of  
    resources  for  teachers  and  sudents.  
     

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