Wednesday, 18 October 2017

The Main Factors Affecting Location Are

Market:-
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:-
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.

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

Safety:-
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:-
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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