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Business Chapter 21: Location Decisions - Coggle Diagram
Business Chapter 21: Location Decisions
factors affecting the location of manufacturing business
production methods and location decisions
market
raw materials/components
external economies of scale
availability of labour
government influence
transport and communications
power and water supply
climate
factors affecting the location of a service sector business
customers
direct contact
no direct contact needed
technology
availability of labour
climate
near to other businesses
rent/taxes
personal preferences of the owners
factors affecting the location of a retailing business
shoppers
type of shoppers
number of shoppers
nearby shops
competitors
attract shoppers
gap in the market?
customer parking
availability of suitable vacant premises
rent/taxes
access for delivery vehicles
security
legislation
factors that a business could consider when deciding in which country to locate operations
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
the role of legal controls on location decisions
why governments try to influence location decisions
encourage businesses to set up and expand areas in high unemployment
discourage firms from locating in overcrowded areas or other sites with natural beauty
two types of measures used to influence where firms locate
planning regulations legally
government grants of subsidies