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Iara Ticozzi, Isabella Corbisiero, Ivo mercante, Lautaro Gatti, Manuel…
Iara Ticozzi, Isabella Corbisiero, Ivo mercante, Lautaro Gatti, Manuel Tomas, Serena Borghesi
Location of industries
Factors affecting the location
Production methods and location decisions
Job production
Small scale
Flow production
Large scale
Market
Factories need to be located near the market
Fresh products
Transport
Raw materials/components
Heavier and more expensive to transport
Than finished products
Fresh raw materials
Need to be close to the selling site
External economies of scale
May be better if nearby
To respond quickly to breakdowns
Availability of labour
Particular skilled labour is needed
Goverment influence
State-funded grants
To encourage firms to move there
Transport and communications
A transport system nearby
Is important
Power and water supplies
Some industries need
A reliable source of
Power
No regular cuts may be essential
Water
Needed for manufacturing
Climate
Doesnt influence most manufacturing businesses
Location of a service sector business
Customers
Direct contact
Direct contact not necessary
Contacted by
Telephone
Post
Internet
Personal preference of the owners
Locate service centre
Near costumers
Technology
Advantages in communication
Internet
Advantages
Location
Outskirts of cities or remote areas
Cheapper rent
Abroad
Depends
How many workers are required
Availability of labour
If requires a large number of employees
Cannot locate in remote areas
Near a city
If skilled labour is required
Locate near
That type of labour is found
Climate
Affect
Tourism companies
Location
Good climate
Strategic
Near to other businesses
Some sevices serve
Needs to other businesses
Location
Near
Provide quick response
Example
Banks
Need to be located near busy areas
Advantages
Internet
Homebanking
Rent/taxes
Near cities
More taxes
More rent
remote areas or outskirts
Less rent
Less taxes
Location of a retailing business
Shoppers
retailers
popular areas
shopping mall
centre
area attractiveness
influenced
type of shopper
expensive goods
high incomes
small-gift products
area
visited by tourists
Nearby shops
near to shops businesses
visited regularly
post office
popular fast-food outlet
pass your shop on the way
go in
make a purchase
competitors nearby
positive situation
visit area
lot of choice
increasing business
no competitors nearby
not attract people
limited choice
Customer parking available/ nearby
parking
convenience
near shops
encourage shoppers
increase sales
lack of parking
off visiting the area
lower sales
Rent/ taxes
central site
premises
higher
rent
taxes
popular retail area
high site demand
renting costs higher
less popular area
lower
demand
rent
Access for delivery vehicles
if it is difficult to gain access
consideration
Security
High rates of crimes
May deter a business
From locating on a certain area
Insurance companies
Might not want to insure the businesses
Legislation
law restrictions
trading
marketing of goods
Availability of suitable vacant premises
suitable
vacant shop
premises
not available
purchase
rent
business
not able to locate
wished area
Overseas factors
New markets overseas
steady increase in sales
relocate to the area
cost effective
Cheaper or new sources of material
raw material run out
bring alternative supplies
move to a new site
cheaper
Difficulties with the labour force and wage costs
if wage costs keep rising
cheaper to relocate
reduce wage costs
skilled labour needed
relocate
where there is the right type of labour
Rents/ taxes considerations
If they keep increasing
It might cause businesses
To relocate to countries
Where they are lower
Availability of government grants
Governments may want business
To locate in their country
To induce them to come
They give grants
They lower taxes
Trade and tariff barriers
If there are barriers
They might want to relocate
To a country were there aren’t any