1.5 Business location

• The location of a business can significantly impact its accessibility.


  True
• What are the advantages of locating a business in an urban area?

  Large customer base, good infrastructure
• What determines the optimal business location?

  Specific needs and priorities
• What is the primary benefit of agglomeration effects for businesses?

  Share resources and knowledge
• What is the key consideration when choosing a business location?

  Specific business priorities
• The availability of transport links is a key component of infrastructure.
• What two aspects of labor supply influence location decisions?

  Availability and cost
• The benefits of being located near similar businesses are called agglomeration
• What determines the optimal location for a business?

  Specific needs and priorities
• Why is the availability and cost of labor crucial for business location?

  Ability to find skilled workers
• Businesses located near similar industries benefit from agglomeration
• What is the impact of being close to customers and suppliers on a business?

  Improved accessibility and responsiveness
• Match the location type with its advantage:

  Urban areas ↔️ Large customer base

  Rural areas ↔️ Lower rents

  Near competitors ↔️ Shared resources

  Away from competitors ↔️ More market control
• The availability of transport links is a key factor in infrastructure for business location.


  True
• Rural areas offer lower rents but have a smaller customer base
• The availability of utilities is a key component of infrastructure for business location.


  True
• The availability and cost of labor in a given area affects a business's ability to find and retain skilled workers
• What three key factors are significantly impacted by a business's location?

  Costs, accessibility, competitiveness
• Why is the cost of labor a crucial factor in business location decisions?

  Affects ability to retain workers
• Businesses may benefit from being located near similar businesses due to agglomeration
• Businesses located near competitors may benefit from shared resources and agglomeration
• The availability of transport links is a key component of infrastructure.


  True
• Match the business location with its disadvantages:

  Rural areas ↔️ Limited infrastructure, smaller customer base

  Near competitors ↔️ Intense competition, risk of imitation
• One key factor affecting business location is the availability of transport links, also known as infrastructure
• Match the factor affecting business location with its description:

  Market proximity ↔️ Closeness to customers and suppliers

  Regulations and taxes ↔️ Local laws and incentives
• Rural areas typically have higher operating costs compared to urban areas.

  False
• Being close to customers and suppliers is referred to as market proximity.
• Urban areas offer a large customer base but suffer from higher rents and increased congestion.
• Market proximity refers to being close to customers and suppliers.


  True
• What are three key factors that influence business location decisions?

  Costs, accessibility, competitiveness
• Being close to customers and suppliers is known as market proximity


  True
• Match the location with its advantages and disadvantages:

  Urban areas ↔️ Large customer base, higher rents

  Rural areas ↔️ Lower rents, limited infrastructure

  Near competitors ↔️ Agglomeration effects, intense competition

  Away from competitors ↔️ Less competition, harder to attract customers
• What is the strategic impact of business location?

  Costs, accessibility, competitiveness
• Market proximity improves a business's accessibility and responsiveness to market demands


  True
• Match the business location with its characteristics:

  Urban areas ↔️ Large customer base, high costs

  Rural areas ↔️ Lower costs, limited access

  Near competitors ↔️ Shared resources, intense competition

  Away from competitors ↔️ Less competition, harder to attract customers
• Local laws, incentives, and tax policies can make certain locations more or less attractive
• What determines the optimal business location?

  Specific needs and priorities
• Arrange the factors influencing business location in order of importance:

  1️⃣ Infrastructure

  2️⃣ Labor Supply

  3️⃣ Market Proximity
• Match the location type with its disadvantage:

  Urban areas ↔️ Higher operating costs

  Rural areas ↔️ Limited infrastructure

  Near competitors ↔️ Risk of imitation

  Away from competitors ↔️ Harder to attract customers
• Urban areas offer a large customer base but face higher competition