Business Location

1. *

2. *The location of a business is usually considered
when it is first set up or when its present
position proves unsatisfactory for some reason
*The business may look for an alternative site to
set up additional factories/shops either at
home or abroad.

3. *
*Production Methods and Location Decisions
*Nearness to Market
*Raw Materials/Components
*External Economics of Scale
*Availability of Labour
*Transport and Communications
*Government Influence
*Power and Water Supply
*Climate

4. *
*Nearness to customers
*Personal Preference of the Owner
*Technology
*Availability of Labour
*Climate
*Near to Other Businesses
*Rent/Taxes

5. *
*Nearness to shoppers
*Closeness to nearby shops
*Customer Parking available / nearby
*Availability of suitable vacant premises
*Rent / Taxes
*Access for Delivery Vehicles
*Security
*Legislation

6. *
*Existence of New Markets Overseas
*Cheaper or new sources of Materials
*Difficulties with the Labour Force and Wage
Costs
*Rents / Taxes considerations
*Availability of government grants and other
incentives
*Trade and tariff barriers

7. *
*Why do governments try to influence these
location decisions?
1. To encourage businesses to set up and
expand in areas of high unemployment
2. To discourage firms from locating in
overcrowded areas or on sites which are
noted for their natural beauty.

8. * easures used by
government to influence
location
*Planning regulations – they will legally restrict
the business activities that can be undertaken in
certain areas
*governments provide grants or subsidies to
businesses to encourage them to locate in
undeveloped parts of the country