Cambridge International A Level · Business (9609)

Location and scale (A Level): Practice Questions

5 multiple-choice questions marked as you go, and 3 written questions with worked solutions. All on Location and scale (A Level).

8 questions15 marksFree, no account

Question 1

1 mark

Which of the following is most likely to result in internal economies of scale for a growing manufacturing business?

Question 2

1 mark

A multinational corporation (MNC) is evaluating two international locations. Location A offers a lower corporate tax rate, while Location B provides a highly skilled workforce but higher wage costs. If the MNC decides to choose Location B despite the costs, which factor is most likely the primary driver?

Question 3

1 mark

In the context of location strategy, why might a footloose business be less concerned with the traditional factors of production like land costs or raw material proximity?

Question 4

1 mark

Which of the following is a qualitative factor that might influence a business's decision to locate a new research and development facility?

Question 5

1 mark

Which of the following is an example of an external economy of scale?

Question 6

2 marks

Identify and briefly explain two internal diseconomies of scale that a business might experience as a result of rapid expansion.

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Question 7

4 marks

Describe two factors that a multinational corporation might consider when making international location decisions.

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Question 8

4 marks

Outline two factors that multinational corporations typically consider when making international location decisions for new production facilities.

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