APHG U7L2.2

According to Least Cost Theory, what factors should factory owners balance when deciding where to open a factory?

• Transportation costs, labor costs & agglomeration

• Raw material costs, marketing costs & competition

• Energy costs, land costs & labor costs

• Technology costs, shipping costs & market demand

What is the main idea behind the concept of the Locational Triangle?

• The market is found at one location and the resources are imported from other countries

• The market is found at one location and the resources to make the product are obtained at two others

• The market is found at the same location as the factory

• The market is found at three different locations for better distribution

What does the term 'Agglomeration' refer to in the context of industrial location?

• The expansion of businesses to dominate a market

• The relocation of businesses to rural areas for tax benefits

• The separation of businesses to reduce competition

• The spatial grouping of businesses in order to share costs

What is the characteristic of a 'Bulk-Reducing Industry' in terms of raw materials and final products?

• Raw materials are heavier than the final product

• Final products are heavier than the raw materials

• Raw materials are lighter than the final product

• Raw materials and final products have equal weight

What is the concept of 'Locational Interdependence' in industrial location decision-making?

• The location decision for a factory being dependent upon the location of other factories

• The location decision based solely on transportation costs

• The location decision based on government incentives

• The location decision influenced by historical factors

What is the main reason for Transnational Companies to build factories in less developed countries?

• Cheaper building costs and labor costs

• Access to advanced technology and skilled labor

• Availability of renewable energy sources

• Proximity to major markets and transportation hubs

What is the significance of 'Front Offices' and 'Back Offices' in the context of industrial location?

• Front Offices are for customer service, while Back Offices are for marketing

• Front Offices are for executive workers in visible locations, while Back Offices are for non-executive employees in cheaper spaces

• Front Offices are for manufacturing products, while Back Offices are for storing inventory

• Front Offices are located near raw material sources, while Back Offices are near the market

What is the main purpose of 'Outsourcing' in the industrial context?

• Automating production processes to reduce labor costs

• Contracting work out to non-company employees or other companies

• Centralizing all operations in one location for efficiency

• Expanding the company's operations to multiple locations

What is the significance of 'Market Orientation' in industrial location decision-making?

• It refers to the location of markets being the primary factor in deciding where to set up a factory

• It involves orienting the factory towards the market for better visibility

• It focuses on the orientation of the factory building towards the sun for energy efficiency

• It emphasizes the importance of market research before selecting a factory location

How does 'Economies of Scale' influence the location of manufacturing plants?

• It encourages setting up smaller plants in multiple locations for cost efficiency

• It favors the concentration of production in a single large plant to benefit from cost advantages

• It promotes the decentralization of manufacturing to reduce transportation costs

• It requires the location of plants near raw material sources to achieve economies of scale