Business 0450 · IGCSE

Location decisions

16 practice questions on Location decisions, with worked solutions and instant marking.

Explain two problems that RW could encounter as the business expands.

Feb/March 2023

Explain two management functions that Charly will use while running her new business.

Feb/March 2025

In country Y, the Government wants to promote more secondary sector business activity in order to cut unemployment. It has announced lower taxes and intends to relax some legal controls on business activity. Kasper Construction is a multinational company from country X that wants to grow. If it can locate a suitable site, it plans to build a brick-making factory in country Y. Some pressure groups oppose this plan because Kasper Construction is known for environmental damage. Fig. 1: Employment in country Y. A pie chart shows employment by sector: primary sector 60%, secondary sector 15%, tertiary sector 25%. Total number of people employed in 2015 = 20 000 000.

May/June 2016

Identify and explain four factors Rosa and Eduardo should take into account when selecting larger premises.

May/June 2016

Explain four factors that could affect where a tertiary sector business locates.

May/June 2021

Explain four business objectives that BB could have.

May/June 2022

Explain two advantages and two disadvantages of VP’s Restaurant Managers passing tasks on to their Assistant Managers.

May/June 2023

DLT makes cups and plates in country X. Its factory operates with flow production and employs 75 workers. The Human Resources Director is aware that employment is controlled by many legal rules. DLT sells 30% of its output to country Y, where it enjoys lower taxation rates and no import quotas. The Managing Director is thinking about moving the factory to another area of country X in order to satisfy the higher demand for exports.

May/June 2024

CQT is a public limited company. It makes paint by using flow production. This production method lets CQT enjoy economies of scale. CQT has 50 workers. At present, all of CQT’s raw materials are purchased from local suppliers. However, the Operations Director is aware that globalisation has many causes. He has been asked to explain the factors a business should weigh up when deciding whether to move its factory to another country.

May/June 2024

GAE is a multinational business that makes steel. It employs 2400 workers and operates factories in 4 countries. The business often brings in new technology. Keeping inventory is important. GAE’s directors are considering constructing a new factory and want to find out how legal controls over location could influence this choice. The Managing Director remarked, "The new factory will create many external benefits."

May/June 2025

Explain one advantage and one disadvantage of PF marketing its products to a mass market.

May/June 2025

Explain two advantages of market segmentation for VV.

May/June 2025

Identify and explain two methods Richard could use to promote the new restaurant.

Oct/Nov 2019

TYA is a limited company that produces 300000 cars each year and employs 600 workers. It has high fixed costs. The Managing Director wants to raise factory efficiency. He commented: ‘Globalisation is altering the way businesses work. Many manufacturing businesses are now deciding whether to move their operations to other countries’.

Oct/Nov 2022

Explain one way each of the following stakeholder groups could be affected if a business becomes a multinational company. • Shareholders • Employees • Suppliers • Government

Oct/Nov 2024

Miguel is intending to launch a gym (sports club). It will provide a variety of fitness classes, including yoga. The business will operate as a partnership with his sister. Miguel believes the business will stay small in scale. Secondary market research will be used to support decisions, including which pricing method to adopt. Miguel understands that choosing an appropriate location is important for any new business.

Oct/Nov 2025