Location units refer to the geographical sites selected by a firm to perform its economic functions. The definition of location is the choice of region and selection of a particular site for setting up a business or factory. Key geographical factors considered in choosing a location include availability of raw materials, technology, power, labor, transportation, storage, marketing feasibility, land characteristics, climate, water resources, and vulnerability to natural disasters. Non-geographical factors that also influence location selection are capital investment, loan availability, investment climate, government policies and regulations, and influence of pressure groups.