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Business location
Study how location decisions are shaped by market access, inputs, labour, competition and cost.
3
Objectives
6
Flashcards
6
Questions
54 min
Study time
AqaGcseBusinessBusiness in the real world
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Syllabus checklist
What you need to know
3 objective pages available
Location factors3 objectives
- Explain how proximity to the market can influence business location.
- Explain how availability of raw materials and labour can influence business location.
- Explain how competition and costs can influence business location.
Key terms
Proximity to marketLabourFixed costs
Exam tips
- Link location to the 4Ps: When answering, explain how proximity to the market affects product availability, price setting, place (distribution) and promotion.
- Structure your answer clearly: Start with a brief statement, then explain cost and efficiency impacts, and finish with a balanced conclusion.
Common mistakes
- Assuming proximity always reduces all costs: Proximity mainly cuts transport and logistics costs; it can raise rent, wages and competition, so the overall cost effect depends on the specific context.
- Confusing labour cost with labour availability: High wages may reflect scarcity of skilled labour, but a large, affordable workforce can still make a location attractive.
Practice preview
- Which of the following is a direct benefit for a retailer when choosing a location close to its target market?
- Explain how proximity to the market can influence a small manufacturer’s decision on where to locate its factory.
- Why might a small manufacturer choose a location close to its raw material source?
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