Question

1. discuss the following factors one should consider when choosing the location of a production unit.

a) nearness to raw material
b) nearness to the market
c) availability of human resources or labour
d) good transport and communication networks
e) availability of adequate water and power supply
f) security
g) favourable climatic conditions
h) government policies

Explanation:

a) Nearness to raw material reduces transportation costs and ensures a steady supply.
b) Nearness to the market cuts distribution costs and enables quick response to customer demand.
c) Availability of human resources ensures a skilled workforce for production.
d) Good transport and communication networks aid in movement of goods and information flow.
e) Adequate water and power supply are essential for smooth - running production processes.
f) Security safeguards the production unit, its assets and employees.
g) Favourable climatic conditions can be crucial for certain types of production, e.g., agriculture - related industries.
h) Government policies can offer incentives, regulations and guidelines that impact the viability of the production unit.

Answer:

a) Reduces transport costs and ensures raw - material supply.
b) Cuts distribution costs and enables quick customer response.
c) Ensures a skilled workforce.
d) Aids in goods movement and information flow.
e) Essential for smooth production.
f) Safeguards the unit, assets and employees.
g) Crucial for certain production types.
h) Offers incentives, regulations and guidelines.