Question
Outline five circumstances under which a firm will be located near the market for its products.
Answer
i) When the products are perishable thus require fast delivery
ii) When the products are bulky / heavier than the raw materials
iii) When the products are fragile to avoid loses through breakage
iv) When its cheaper to transport raw materials than the final product
v) When the raw materials are in the same location as the market for the product
vi) When it is the government policy that firms locate near their markets
vii) When the unit value of the products is high/ may pose security threat during transportation
ii) When the products are bulky / heavier than the raw materials
iii) When the products are fragile to avoid loses through breakage
iv) When its cheaper to transport raw materials than the final product
v) When the raw materials are in the same location as the market for the product
vi) When it is the government policy that firms locate near their markets
vii) When the unit value of the products is high/ may pose security threat during transportation
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