Business Locations

A firm currently exports its goods to foreign markets. It might decide to set up a factory in one of these countries if:

• costs of transporting the finished goods fall

• import barriers are put up by the countries it is selling to

• the total market size is falling in the export markets

• the raw material supplies are closer to the existing factory than to the foreign country

Many multinational manufacturing businesses have set up factories in countries in Asia and South America. The most likely reason for this decision is:

• low demand levels in these countries

• low skill levels in these countries

• low levels of government support for industry in these countries

• low wage rates in these countries

The location decision of a firm in the primary sector is most likely to be affected by:

• the location of the main markets

• the available supplies of labour

• the available sources of main raw material

• the location of competitors

A car manufacturer using flow production techniques is more likely to require a location:

• close to shops

• close to land suitable for customer parking

• with large areas of flat land

• close to supplies of primary products

Business locations are very important for all of the following reasons except:

• the location might affect the sales of a product

• the location might affect the costs of production

• the location might affect the available supply of labour

• the location might affect the legal form of ownership

Location is the only factor that influences the success of a business. TRUE or FALSE?

• TRUE

• FALSE

Government location grants are available to regions of a country having high levels of unemployment. TRU or FALSE?

• TRUE

• FALSE

Rate Today's lesson.

• Inspiring

• Motivating

• understanding