Business location- topic 1.5

• Location is the site or sites of where the business is based
• The location of a business is very important as it can affect the: costs, sales and image.
• Factors influencing location of businesses: type of business, competitors, location of suppliers, location of customers, transport links.
• Raw materials are products such as oil, steel and cotton which are used in the production of other goods.
• Advantages of locating overseas

  • cheaper labour
  • access to better raw materials
  • financial incentives
  • market overseas may be growing faster
• A quota is a limit on the number of goods imported into a country.
• Disadvantages of locating overseas

  • different rules and regulations
  • customers may have different tastes
  • environmental costs
  • Problems with supply chains