Business – 9.1 Location and scale – Location | e-Consult
9.1 Location and scale – Location (1 questions)
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Model Answer:
- Proximity to markets: Reduces distribution costs and delivery times, enhancing customer service.
- Availability of raw materials: Minimises inbound transport costs and ensures a reliable supply chain.
- Labor supply and cost: Access to a skilled workforce at competitive wages influences productivity and operating expenses.
- Transport infrastructure: Good road, rail, port or airport links lower logistics costs and improve supply chain efficiency.
- Government incentives and regulations: Tax breaks, grants or relaxed zoning can make a location financially attractive.
- Utilities and energy costs: Reliable and affordable power, water and waste services are essential for continuous production.
- Environmental and community impact: Local opposition or strict environmental standards can increase compliance costs or delay projects.