5.4 Location
Unit 5.4 - Location
The vast majority of businesses need to be positioned well if they are to succeed. Business location encompasses various factors, including the price that firms can charge for their goods and/or services and the wages or salaries they have to pay their workers.
The importance of business location for business success cannot be underestimated. Appropriate location of a business helps to attract customers and employees. It can also impact on the relationship with suppliers. Location can have an impact on the general perception of a business. Hence, the location of a business is likely to have a direct impact on its degree of success.
The learning outcomes (or assessment objectives) for this section of the IB Business Management syllabus are:
- The reasons for a specific location of production (AO2)
- The following ways of reorganizing production, both nationally and internationally (AO3):
- Outsourcing / subcontracting
- Offshoring
- Insourcing
- Reshoring
Note to teachers
The only change or addition to this section of the new syllabus is reshoring as a way of reorganizing production (AO3).
Please also note that outsourcing, offshoring, and reshoring were previously covered in Unit 2.1 of the guide (final exam N23) but this is no longer the case in the new guide.
InThinking Business Management resources
Click the hyperlinks below to access the InThinking resources for this particular section of the IB Business Management syllabus.
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