Learning objective
Explain how proximity to the market can influence business location.
Read the explanation, check the common trap, then practise with flashcards and questions.
At a glance
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Flashcards
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Questions
Topic
Business location
Subtopic
Location factors
Study support
Understand this objective
Quick explanation
Explain how proximity to the market can influence business location
- This point belongs to Business location, especially Location factors.
- You need to be able to explain how proximity to the market can influence business location.
- The key ideas to know are location.
- Use the linked flashcards and practice questions to check recall, then practise applying the idea in an exam-style answer.
Key concepts
Why it matters
This objective helps connect Location factors to exam-style questions, flashcards, and revision notes for Business location.
Quick student answer
Explain how proximity to the market can influence a small manufacturer’s decision on where to locate its factory.
Direct answer
Proximity to the market allows the manufacturer to reduce distribution costs, respond quickly to demand changes, and build stronger relationships with customers, but it may also mean higher site costs and increased competition.
How it works
The answer identifies the main cause‑effect link (lower transport costs and faster response) and balances it with potential drawbacks (higher rent, competition).
Key terms
- Proximity to market: The physical closeness of a business to the customers it serves, influencing transport costs, customer access and competitive dynamics.
Common trap
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.
Related questions
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Revision notestopic notes
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