Location (Quick Revision)

Question 1

Define: Location

Answer 1

The location is the site(s) on which a business is based.

Question 2

State two ways in which the government might influence a firm’s location.

Answer 2

• Offer financial incentives to attract firms to particular areas
• Refuse permission to set up except in particular areas

Question 3

State two ways in which a firm’s location may affect its revenue.

Answer 3

• Impact on brand image (e.g. if attractive location)

* May be nearer customers or easier for them to access

Question 4

State two factors that have made firms more footloose.

Answer 4

• Increased use of IT (e.g. growth of teleworking)

* Growth of internet services (e.g. online banking)

Question 5

What is meant by the infrastructure?

Answer 5

The system of energy, communications and transport provision.

Question 6

What is the Examiner’s note for Location?

Answer 6

Remember that the location of a firm is where it produces; it may sell elsewhere.

Question 7

What is the Evaluation point for Location?

Answer 7

When making a location decision, firms may have to think about which country and then which region and then which area, si there may be a series of decisions.