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What are factors that influence the location of your business?

Updated: Jun 18

There are many factors influencing the location of your business. Among them are;

  1. Scale of production

  2. Supplies and materials

  3. Access to markets

  4. Suitable labour

  5. Cost of premise

  6. Transportation and infrastructure

  7. Proximity to supporting/other businesses

  8. Fair weather/environment conditions

  9. Security/social and political stability

  10. Government policies

  11. Owner’s preferences


  1. Do you think MSH should relocate its business? Justify your answer. (6 marks) Feb/Mar 2018/12

  2. Identify and explain two possible problems for SJD if it decides to relocate its business. (4 marks) May/June 2018/11

  3. Explain two possible problems for a firm of relocating its operations to another country. (6 marks) May/June 2020/12

  4. Explain one advantage and one disadvantage to a firm in choosing a location in the city centre. (6 marks) May/June 2020/13

  5. Do you think a firm should relocate its factories to a low-cost country in Asia? Justify your answer. (6 marks) Oct/Nov 2018/11

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