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Factors influencing the location of
a business.
Labour Regulations
 Minimum wages.
 Hours
 Strict laws
 Laws and restrictions.
 Employ, dismiss, treat workers fairly.
Environmental factors
 Restrictions and laws.
 Pollution and dumping laws.
 Noise and air pollution restrictions.
 Building restrictions.
 Adequate natural resources.
Transportation
 Suppliers
 Workers
 Distribution
 Raw materials
 Transport costs
 Distribution of final product reasonable and
accessible.
 Condition of roads, railways and harbours.
Infrastructure
 Water
 Electricity-costs
 Sewage systems
 Repair and maintenance
Potential market
 Close
 Growth
 Competition
Raw materials
 Availability
 Shortage
 Transport costs
Labour market
 Workers/employees
 Skilled labour
 Cost effective unskilled labour.
 Training facilities
 Labour rates
Climate
 A particular climate
 Harsh hot or cold conditions
 Additional air conditioning or heating costs.
Government and local regulations.
 Laws that prohibit the location of certain businesses.
 Will government regulations have an impact on long-
term business decisions.
 Tax incentives
Government and local regulations.
 Attitude
 Affordable
 Public and private sector
 Crime rate
Government and local regulations.
 Political stability
 Wholesale enterprises
 banks
Activity 18.1 pg.239

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