Business Ch. 21 - Location Decisions

A decision of where to locate a service sector (tertiary) business such as a retailer will depend on all of the following factors except

• the location of the raw material suppliers

• the rent of the premises

• the income level of the population

• the nearness to city centres

The availability of highly trained and qualified workers is not likely to affect the location decisions of

• a garden centre business

• a micro-chip manufacturing business

• a restaurant aiming to gain awards for the quality of its food

• a factory that uses computer controlled machinery

The quality of the local transport system is most likely to influence the location decision of a

• hotel

• manufacturer that uses JIT

• bank

• cafe

Legal environmental controls over business location decisions are most likely to impact on a

• farm

• steel works

• business that sells petrol

• hairdressing business

If a labour intensive business is planning to relocate to another country, then one of the most important factorsi n the decision of which country to choose is likely to be

• level of rents in different countries

• the quality of the transport system

• the environmental controls on location

• the level of national minimum wages

When raw materials are heavy and bulky, the transport system is an important location factor for a manufacturing business.

• True

• False

Distance from city centres is likely to be a major influence in the location decision for an online trader

• True

• False

The decision to relocate a telephone customer help centre to another country might be largely the result of lower labour costs

• True

• False

Population data would not be important to an entrepreneur deciding where to locate her first wedding dress shop

• True

• False

External economies of scale might encourage a car manufacturer to locate close to other car manufacturers

• True

• False