Business Location Decisions Quiz

Elements that influence where a business chooses to operate, including proximity to customers, labor, materials, and competitors, business type, internet impact, legal controls, and trade blocs.

Businesses locate near customers for convenience and to reduce transportation costs.

Businesses need to be near a skilled workforce; this affects the industry type.

Businesses locate near raw materials to minimize transportation costs for raw materials involved in manufacturing.

Businesses may choose locations near competitors for industry networking/sharing ideas or to be near their customer base.

Internet allows businesses to operate with less need to be in a specific location, due to the ability to conduct business remotely

Governments enact laws influencing business locations, for instance zoning laws or legal restrictions on operating certain businesses in certain areas.

Trade agreements (like the EU) can affect location decisions due to regional trading practices, impact business locations when considering potential trade

Groups of countries in a region that eliminate barriers to trade between members, like the EU, GCC, and ASEAN.

Businesses often choose to locate within a trade bloc to avoid import taxes and tariffs, reducing business costs.

Businesses locate inside a trade bloc to benefit from reduced costs and eliminate trade barriers, like import taxes.

Land previously used for urban development, needing cleanup before new construction, e.g., abandoned factories or landfills.

Land untouched by urban development, ready for construction, often in rural areas.

Businesses locate near competitors to draw customers & increase product options.

Retail businesses need to be near shoppers and have good parking and affordable rent.

Specific areas develop expertise in certain types of production.

The concentration of businesses of a similar type in a geographic area

The skill set within a specific area's workforce that influences the types of industries attracted there.

Business location decisions are influenced by proximity to materials, labor, competitors, and customers.

Service businesses often need to locate close to customers due to travel needs, and may also need a good supply of labor.

Manufacturing businesses often need to be close to good transport links for materials and finished goods, as well as a skilled workforce.

The internet allows businesses to operate remotely, expanding their reach and potentially reducing the need for a physical location.

Governments use planning controls to influence business location, restricting development, encouraging business in specific areas, offering incentives, and attracting foreign investment.

A study that assesses the feasibility of a business idea, evaluating its potential success, costs, and income.

A time for discussion with stakeholders about the potential impact of a business project.