location

• What is a key factor that determines the location of new and existing businesses?


  Access to customers
• What is another key factor that influences business location?


  Access to factors of production
• What is a third key factor that affects business location?

  Minimisation of costs
• What are the main location costs that new businesses incur?

  • Planning permission
  • Purchasing or rental/leasing
  • Refurbishment
  • Business rates
  • Labour costs
  • Transport costs
• Why might a new business not choose the ideal location for its operations?


  Because they may not be able to afford the location costs
• How does the importance of location affect a new business's success?


  It depends on the products and services offered and the market in which they operate
• What is the market in the context of business location?


  The market is the place where buyers and sellers meet
• What should retail location be driven by?

  Access to customers
• What is the significance of an anchor tenant in a shopping centre?

  An anchor tenant attracts other tenants and shoppers, setting the tone for the shopping centre
• How can being near competitors benefit a business?


  It can allow the business to take advantage of the competitors' marketing efforts
• What is the role of economies of concentration or agglomeration?


  They allow businesses in related industries to gain mutual advantages by locating close together
• What does the term 'infrastructure' encompass in modern business?

  It includes electronic communication systems, training agencies, and financial services
• What is a significant issue regarding infrastructure development in the UK?

  There is a major imbalance in development between the South East and the rest of the country
• What is the impact of skilled labour availability on business location?

  Businesses may be attracted to areas with a skilled labour force
• How does the cost of labour influence international business location?


  Businesses often relocate to areas where labour costs are lower
• What role do government grants play in business location decisions?


  They provide incentives for businesses to move to particular regions
• What social factors can influence a manager's decision on business location?

  Managers prefer environments with leisure facilities, good schools, and low crime
• What are the characteristics of footloose businesses?


  • Move from location to location
  • Base themselves wherever best suits their needs
  • Influenced by changing patterns of trade, improved communications, and freer flows of capital
• What is the significance of economies of scale in international location decisions?

  They allow businesses to reduce average production costs by having a single plant supply all requirements
• How has containerisation affected international transport costs?

  It has reduced transport costs from around 25% to below 5% of the selling price
• How can political factors influence business location decisions?

  Tariff and quota-free access to trading blocs may depend on setting up production facilities within those blocs
• What is transfer costing?


  It is a process by which businesses inflate profits in low-tax countries and decrease profits in high-tax countries
• Why do some companies establish head offices in low-tax regions?


  To allow transfer costing to take place
• How do high-tech industries benefit from global location choices?


  They can choose from skilled workforces in various global locations
• What is the ethical concern regarding businesses using flags of convenience?

  It raises issues about reduced worker protections and rights
• What are the main factors influencing international business location decisions?

  • Political stability
  • Availability of workforce
  • Maximising economies of scale
  • Comparative international wage levels
  • Freedom from restrictive regulations