Paper 1 · November 2024 · business relocation
A firm that processes heavy, bulky raw materials into a much lighter finished product will usually site its works
Awhere advertising is cheapest
Bnear its source of raw materials
Cnear its final consumers
Din the centre of the largest city
Explanation
A bulk reducing firm loses weight in processing, so carrying the light finished goods to market costs less than hauling the heavy inputs to a distant works. Locating at the raw material is therefore the biggest transport saving open to it.
Derived from ZIMSEC Business Enterprise Skills Paper 1, Nov 2024, Q1