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Location - Coggle Diagram
Location
Location Decisions
Many businesses operate on a large scale and look at a location on a world level, not just national or continental level. This is termed globalization because firms plan many aspects of their business, such as location decisions, marketing, and sales, on a global scale.
Factors affecting where a manufacturing business chooses to locate will usually differ from factors affecting where a service sector business will set up, so these must be considered separately.
The location of a business is considered when it is first set up or when it's present position is unsatisfactory for some reason. The business environment is always changing and so do business objectives. Eg: expanding or increasing profits, may result in a location no longer being suitable. The business may look for an alternative site to set up additional factories/shops either at home or abroad.
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Locating Overseas
Factors:
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• Unstable/expensive labour – A business (especially factories) may want to relocate to another country with cheaper labour
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• Government grants for foreign businesses – The government may give businesses grants(money) and reduce tax because they want the business to relocate to their country
• Overcome trade and tariff barriers – Some countries may charge tax on imported goods and businesses can overcome them by relocating their factory to that country instead.