9609 · 9.1.1
Location flashcards
Revision flashcards for Cambridge 9609 Location (syllabus 9.1.1). Flip, recall, then mark a real past-paper question.
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Labour factor?
Wage rates, productivity, unions, training pools — links to 4.1.3.
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Material factor?
Heavy/bulky inputs favour location near suppliers.
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Market factor?
Perishable or bulky products favour location near customers.
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Government incentives?
Free trade zones, subsidies — PESTLE political/economic (6.1).
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Offshore location risk?
Supply chain disruption, quality control, exchange rates.
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Agglomeration?
Firms cluster in same area — shared skills and suppliers.
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Link to sustainability?
Long transport routes increase carbon footprint (4.1.2).
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Service location?
Retail/hotels need footfall and accessibility not raw materials.
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What is meant by 'offshoring'?
Offshoring is the business practice of relocating a business process or entire operation from one country to another, typically to take advantage of lower costs, access skilled labour, or enter new markets.
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Define 'quantitative location factors'.
These are factors that can be measured in numerical or financial terms, such as labour costs, site costs, transport distances, government grants, and exchange rates. They allow for objective financial comparison between locations.
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Define 'qualitative location factors'.
These are non-measurable factors that affect the quality of business operations, such as the skill level of the workforce, quality of infrastructure, political stability, brand image, and ethical considerations.
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What is a 'footloose' business?
A footloose business is one whose location choice is not tied to a specific raw material source or market, often because its products have low transport costs. Examples include software development or financial services, which can locate wherever telecommunications and skilled labour are available.
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What is 'industrial inertia'?
Industrial inertia is the tendency for a business to remain in its original location even after the factors that initially made it optimal (e.g., raw material source) have disappeared. This can be due to the high cost of relocation or ties to the local skilled workforce.