Wednesday, 18 October 2017

The Main Factors Affecting Location Are

The nearness of the market and the cost of delivering the goods are likely to be important factors.

Raw Materials:-
If the raw materials are bulky and expensive to transport it will clearly be in the entrepreneur's interest to locate near to them.

Transport Costs:-
The two major influences are the pull of the market and the pull of the raw materials and these are determined by whether or not the industry is bulk-increasing or bulk-decreasing.

Land costs vary considerably nationally and some firms, e.g. wholesalers, might need a large square-footage. They might, therefore, be influenced by the cheaper rents and property prices found in some areas.

The availability of labour might well attract firms to an area, particularly if that labour force has the skills they require.

Some industries have to locate their premises well away from high density population levels and their choice of location is limited.

Waste Disposal:-
Certain industries produce considerable waste and the costs associated with the disposal of this might affect their location.

Government provides special assistance to areas of high unemployment. This takes place within the UK, and is also a feature of wider European Union regional policy.

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