5.4.1BM25 flashcards

Factors affecting location

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Card 1 of 255.4.1

5.4.1

Question

Quantitative location factors are ___

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All 25 Flashcards — Factors affecting location

Card 1definition

Question

Quantitative location factors are ___

Answer

Measurable — rent costs, wage rates, transport costs, government grants.

💡 Hint

Measurable numbers

Card 2concept

Question

Location affects costs, revenue, ___ and ___

Answer

Operations and recruitment.

💡 Hint

Operations + recruitment

Card 3concept

Question

Name four international location factors

Answer

Lower labour costs, access to new markets, fewer regulations/lower taxes, language/cultural barriers, political risk, exchange rates, trade agreements.

💡 Hint

Cost, markets, regulations, barriers

Card 4concept

Question

Name six key location factors

Answer

Proximity to market, proximity to materials, labour availability, land/rent costs, transport links, government incentives.

💡 Hint

Market, materials, labour, cost, transport, incentives

Card 5concept

Question

Why is location a critical business decision?

Answer

It's long-term and expensive to change — affects costs, revenue, operations and recruitment.

💡 Hint

Hard to reverse

Card 6concept

Question

'Proximity to market' matters most for ___

Answer

Retail and service businesses — being close to customers is vital.

💡 Hint

Retail + services

Card 7concept

Question

Location affects four things:

Answer

Costs (rent, wages), revenue (customer access), operations (supply chain), recruitment (skilled workers).

💡 Hint

Costs, revenue, ops, recruitment

Card 8definition

Question

Qualitative location factors are ___

Answer

Harder to measure — quality of life, brand image, manager preference, ethics.

💡 Hint

Harder to measure

Card 9concept

Question

Why move production to a developing country?

Answer

Lower wages — but must consider quality control, shipping costs and reputational risks.

💡 Hint

Lower wages + trade-offs

Card 10concept

Question

Key factors: market, materials, labour, costs, transport, ___

Answer

Government incentives.

💡 Hint

Incentives

Card 11concept

Question

Why is it hard to change location once chosen?

Answer

Expensive to move, disrupts operations, may lose staff and customers — a long-term commitment.

💡 Hint

Expensive + disruptive

Card 12concept

Question

Political risk affects international location because ___

Answer

Unstable governments can change laws, seize assets or create uncertainty.

💡 Hint

Uncertainty + asset risk

Card 13concept

Question

Good location decisions balance ___

Answer

Both quantitative (numbers) AND qualitative (intangible) factors.

💡 Hint

Both quant + qual

Card 14concept

Question

'Proximity to raw materials' matters most for ___

Answer

Manufacturing and primary sector — reduces transport costs for heavy/bulky inputs.

💡 Hint

Manufacturing + primary

Card 15concept

Question

Always apply location factors to ___

Answer

The specific business in the exam — don't just list generic factors.

💡 Hint

The specific business

Card 16concept

Question

Name three 'other' location factors

Answer

Infrastructure (power, internet), legal regulations, competitor proximity, quality of life, climate/natural risks.

💡 Hint

Infrastructure, regulations, competitors

Card 17concept

Question

International adds: political risk, exchange rates, ___

Answer

Language/cultural barriers and trade agreements/tariffs.

💡 Hint

Barriers + trade

Card 18concept

Question

A factory cares about different location factors than ___

Answer

A coffee shop — always apply factors to the specific business type.

💡 Hint

Different businesses = different factors

Card 19concept

Question

Quality of life affects location because ___

Answer

It influences the business's ability to attract talented staff.

💡 Hint

Attract talent

Card 20concept

Question

Exchange rate fluctuations matter because ___

Answer

Currency changes can make costs or revenues unpredictable in international locations.

💡 Hint

Unpredictable costs/revenue

Card 21concept

Question

International location trade-off: lower costs vs ___

Answer

Quality control challenges, shipping costs, cultural barriers and reputational risks.

💡 Hint

Quality + shipping + reputation

Card 22concept

Question

Quick: Quantitative = measurable. Qualitative = ___

Answer

Harder to measure but still important (quality of life, ethics, preference).

💡 Hint

Hard to measure

Card 23concept

Question

Location affects costs like ___

Answer

Rent, wages and transport — cheaper locations reduce fixed costs.

💡 Hint

Rent, wages, transport

Card 24concept

Question

Being near competitors can be ___ or ___

Answer

Good (footfall/clustering benefits) or bad (increased rivalry).

💡 Hint

Good or bad

Card 25concept

Question

Manager's personal preference is a ___ factor

Answer

Qualitative — hard to measure but can influence the final decision.

💡 Hint

Qualitative

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