5.4 Location

1. Why might a business prioritize proximity to its market?

• To reduce delivery times and costs

• To minimize labor costs

• • To access raw materials directly

• • To avoid competition

2. Which factor is MOST important for a business producing perishable goods?

• • High-quality infrastructure

• • Availability of skilled labor

• • Proximity to market

• • Low tax rates

3. What is a key reason why a TECH company might choose a location near universities?

• • Higher government subsidies

• • Proximity to raw materials

• • Access to innovative ideas and skilled graduates

• • Lower transportation costs

4. Which type of business is MOST likely to consider proximity to competitors?

• • A mining company

• • A fast-food chain

• • A pharmaceutical manufacturer

• • An online retailer

5. How does the availability of skilled labor influence location decisions?

• • It ensures the business has the expertise it needs

• • It reduces transportation costs

• • It increases the speed of product delivery

• • It guarantees proximity to competitors

6. Why might businesses prefer locations near major transportation hubs?

• • To attract local customers

• • To ensure efficient distribution networks

• • To avoid paying high wages

• • To limit exposure to competition

7. What is a significant disadvantage of locating near competitors?

• • Poor infrastructure

• • Difficulty accessing raw materials

• • Higher transportation costs

• • Increased competition for customers

8. Why might a business choose a location in a rural area?

• • Increased proximity to competitors

• • Better connectivity to transport networks

• • Lower land and operational costs

• • Access to a larger customer base

9. How would government policy most likely affect location decisions?

• • It guarantees access to skilled labor

• • Tax incentives can encourage businesses to locate in specific areas

• • It ensures lower competition levels

• • It reduces the need for infrastructure investment

10. Which factor is MOST important for a MINING company choosing a location?

• • Local market size

• • Competitor locations

• • Skilled labor availability

• • Proximity to raw materials