gcse economics - firms - economies of scale
How do businesses decide where to locate? A number of factors are involved. These vary depending on what the business produces e.g. primary, secondary and tertiary
POSSIBLE REASONS FOR CHOOSING A SPECIFIC LOCATION:
• Near to the market (that is its customers)
•
Near to raw materials
•
Availability of skilled / unskilled labour
•
Local pay rates – this could be influenced by unemployment rates
•
Cost of land
•
Government support e.g. grants
•
Transport links
Technology has given businesses far more freedom in recent years. Computer networks, mobile phones and the Internet mean that many service companies can locate away from their customers and other branches. They can communicate through technology or the postal service.
HOW DO INTERNATIONAL BUSINESSES DECIDE WHERE TO LOCATE?
• Cost of workers
•
Transport costs / links
•
How near is the base to its existing / new customers?
•
Is the country in the European Union? (see page )
•
Is the country in the European Monetary Union? (see page)
ACTION
a. Think of THREE businesses near you. Why have they located there. Do this for a) Primary sector b) secondary sector c) tertiary sector
b. How
can the Government influence where a business locates?
SMART
THINKING
c. What is meant by industrial inertia? Explain why this occurs.
d. What factors might influence a foreign business to locate in the UK?
These GCSE Economics revision notes have been kindly provided by Peter Davies of Mill Hill School, Ripley Keep Up-todate with your GCSE Economics - Subscribe Free to Economics in the News by Email
|
tutor2u is the leading global publisher of e-learning resources for Economics, Business, Politics, Enterprise, Law, Sociology, Religious Studies and related subjects. Our materials are used by over 3,500 schools and colleges in the UK and in educational institutions in over 85 other countries. tutor2u offers a range of free and subscription-based materials - designed to support teachers and inspire students. The business also runs a popular series of student revision workshops and teacher conferences. tutor2u was named Online Learning Resource of the Year at the prestigious BETT Show - the World's leading educational show.
|
Privacy & terms of Use |
Contact us |
Teacher Newsletters & Subject Blogs |
