Location decisions
9 flashcards to master Location decisions
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Define 'proximity to market' and explain why it's a crucial location factor.
'Proximity to market' refers to the closeness of a business to its customers. It's crucial because it can reduce transportation costs, improve customer service by ensuring faster delivery, and allow for quick feedback on products.
Explain why a manufacturing business might choose a location with 'proximity to raw materials'. Provide an example.
Proximity to raw materials reduces transportation costs and ensures a steady supply of inputs, especially if the raw materials are bulky or perishable.
Why is 'labour supply' an important factor when choosing a business location?
An adequate 'labour supply' ensures a business has enough skilled and unskilled workers available at reasonable wages. A sufficient labor pool minimizes recruitment difficulties and potential production delays.
Assess the impact of good 'transport links' on a business's success.
Good 'transport links' such as roads, railways, and ports facilitate the efficient movement of goods and people, reducing transportation costs and improving access to markets and supplies. Poor transport links can lead to delays and increased expenses.
Describe two types of 'government incentives' and how they can influence location decisions.
'Government incentives' such as tax breaks and grants can significantly reduce the cost of setting up or operating a business in a particular location. These incentives can make otherwise unattractive locations more appealing.
Explain the term 'infrastructure' and provide examples of how it affects location decisions.
'Infrastructure' refers to the basic physical and organizational structures needed for a business to operate, such as roads, utilities (water, electricity), and communication networks. Good infrastructure reduces costs and improves efficiency.
What are the potential drawbacks of 'relocation' for a business?
'Relocation' can disrupt operations, lead to the loss of key employees who are unwilling to move, and involve significant costs associated with setting up a new facility and potentially selling the old one.
Define 'globalisation' and explain how it influences location decisions.
'Globalisation' is the increasing interconnectedness of countries through trade, investment, and cultural exchange. Globalisation provides businesses with access to wider markets, cheaper labor, and new resources, impacting location decisions.
Explain how 'proximity to competitors' can be a location factor.
Locating near competitors can be beneficial. It allows businesses to benefit from established customer flows and shared infrastructure, such as parking. It also increases competition.
Key Questions: Location decisions
Define 'proximity to market' and explain why it's a crucial location factor.
'Proximity to market' refers to the closeness of a business to its customers. It's crucial because it can reduce transportation costs, improve customer service by ensuring faster delivery, and allow for quick feedback on products.
Describe two types of 'government incentives' and how they can influence location decisions.
'Government incentives' such as tax breaks and grants can significantly reduce the cost of setting up or operating a business in a particular location. These incentives can make otherwise unattractive locations more appealing.
Explain the term 'infrastructure' and provide examples of how it affects location decisions.
'Infrastructure' refers to the basic physical and organizational structures needed for a business to operate, such as roads, utilities (water, electricity), and communication networks. Good infrastructure reduces costs and improves efficiency.
Define 'globalisation' and explain how it influences location decisions.
'Globalisation' is the increasing interconnectedness of countries through trade, investment, and cultural exchange. Globalisation provides businesses with access to wider markets, cheaper labor, and new resources, impacting location decisions.
About Location decisions (4.4)
These 9 flashcards cover everything you need to know about Location decisions for your Cambridge IGCSE Business Studies (0450) exam. Each card is designed based on the official syllabus requirements.
What You'll Learn
- 4 Definitions - Key terms and their precise meanings that examiners expect
- 4 Key Concepts - Core ideas and principles from the 0450 syllabus
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After mastering Location decisions, explore these related topics:
- 4.3 Quality management - 9 flashcards
- 5.1 Business finance: needs and sources - 10 flashcards
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