Cambridge IGCSE · Business Studies (0450)

Location decisions: Practice Questions

5 multiple-choice questions marked as you go, and 5 written questions with worked solutions. All on Location decisions.

10 questions23 marksFree, no account

Question 1

1 mark

Which factor is most likely to be the highest priority for an enterprise that manufactures heavy, bulky steel components from raw iron ore?

Question 2

1 mark

How does the infrastructure requirement of a call center differ from that of a car manufacturing plant?

Question 3

1 mark

An enterprise wants to expand into Country Y. Country Y has low labor costs but imposes high import tariffs on finished goods. What is the most likely strategy for the enterprise to minimize costs?

Question 4

1 mark

Why might a government offer a financial grant or a tax holiday to an enterprise to locate in a specific area?

Question 5

1 mark

Which of the following would be classified as a qualitative factor in a location decision?

Question 6

2 marks

State two factors that a retail clothing business would consider when deciding on a location.

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Question 7

3 marks

Explain why a bulk-increasing industry, such as a beverage manufacturer, might choose to locate its factory near its customers.

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Question 8

6 marks

Analyze how advancements in communication technology have influenced the location decisions of modern service-based businesses like call centers.

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Question 9

3 marks

Location decisions
A new hair salon is deciding where to open its first branch.
(a) State two factors that would influence the choice of location for a service-based business.
(b) Why is proximity to customers particularly important for a retail business?

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Question 10

4 marks

Location decisions
A multinational car manufacturer is looking for a location for a new factory in a developing country.
(a) Explain how government incentives might influence this decision.
(b) Identify and explain how the infrastructure of the country affects the choice of location.

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