A location factor is to the location bound or on a place a referred measured variable on systems.

Economics

A location factor describes the attractiveness of a production location for a trade settlement in the economic life. Location factors are the whole of the factors, which affect an enterprise in the choice of a location. There are clear differences in the evaluation of the importance of the individual location factors for the enterprises (industry and size-specific differences). It is differentiated between hard and soft location factors:

• Hard location factors (e.g. taxes, deliveries, subsidies, etc.) are quantifiable and can be included directly into the balance of an enterprise also. They are in some cases also an indispensable condition for the establishment of an enterprise (for example the proximity of a sufficiently large waters as a cooling agent supplier for a power station).
• If soft location factors (e.g. culture offer, leisure-time facilities, educational provision, etc.) cannot be integrated into the cost calculation of an enterprise, however ever more go with the choice of location into action.

In the increasing European competition of the regions municipalities of a life or a marketing area (e.g. Rhine Main) see themselves placed before the challenge to apply the own attractive location factors by measures of the promotion of economy development co-ordinated region far. Since the hard location factors are not subject usually or only in limited measure to their influence, the promotion of economy development concentrates increasingly on the soft location factors.

Hard location factors

• Infrastructure
  • Traffic route
  • Transport costs, modes of conveyance, transshipment (broken traffic), containers
  • Energy prices
  • Communications network
  • Power supply (electricity mains)
• national promotion (subsidies)
• Height of the taxes and deliveries
• political, economic, social stability
• Proximity, size and entrance to factor of production markets
  • Availability of raw materials (decrease in weight/pure materials)
  • Availability of opened surfaces
  • Transaction costs
  • Plot prices/cost of renting
  • Entrance to the capital market
  • Workers
  • Labor costs (wage level)
  • Quantitative availability
  • Qualitative availability
  • Unemployment ratio
  • male/womanlike
• Purchasing power
• Wage costses
• Proximity, size and entrance to the relevant sales market (the enterprise)
• Transparency of the market
• Market entrance barriers
• Competition intensity
• Proximity to ancillary industries
• Proximity to research, education and development mechanisms
• Environmental protection editions
• Climate

Yield location factors

• Enterprise-referred factors
  • Restaurant economics at the location
  • Image of the location and the region (location prestige)
  • Enterprise friendliness of the public administration
  • Competition and/or feeling advantages (relations network, dye)
  • Economic blocs
• Personal location factors
  • Residential environment, mentality of the residents population
  • The quality of the environment
  • Educational provision
  • Recovery, culture and leisure offer
  • Purchase possibilities

See also: Location theories and enterprise location

Ecology, biology

Location factors in these subjects are measured variables in the ecosystem, biotopes and in ecological systems. One differentiates between:

• Abioti factors (abiotischer factor, like soil, climate, atmosphere, water, light, current, concentration at feeding salts and other chemical sizes) and
• bio tables factors (biotischer factor, the influence of the habitat by ecological strategies).

The question about, which plants at a location can grow (however not to have) become from the climatic and, the Floren determines soil conditions (the edaphischen conditions) and vegetation history, as well as the influence of humans (direct or over its pasture animals).

During the discovery site the geographical location of an occurrence indicates goes it for the location around the geological underground, soil type and type of soil, exposition and declination, Pflanzengesellschaft and biotope.

Related links

• VIG

• Back misalignments of German enterprises from the foreign country

Articles in category "Location factor"

We found here 5 articles.

Related Websites

We found here 6 related websites.

• Cities as Location Factor: Public Space Current Situation ...
  Location Factor:. Public Space. Abridged Version. October 2002. On the behalf of the. Federal Office for. Building and Regional Planning. Report by: ...


• Cultural activities as a location factor in European competition ...
  Downloadable ! Author(s): Jolanta Dziembowska-Kowalska & Rolf H. Funck. 2000 Abstract: The main aim of this paper is to provide a theoretical background and ...


• IndustryWeek : Health Care Expenses ARE An Important Site Location ...
  Health Care Expenses ARE An Important Site Location Factor -- Part 2. Businesses need to take a healthy interest in health care costs, ...


• IndustryWeek : Health Care Expenses ARE An Important Site Location ...
  Health Care Expenses ARE An Important Site Location Factor. When it comes to health care coverage, which states offer the lowest costs, adequate coverage ...


• Review of Location Factor Literature
  the most important location factor to a firm. Quality of life factors, ... incentives may not be a major factor in influencing the location process for ...


• Water as a Raw Material is a Location Factor in Europe
  The cost and availability of water will come to affect European economies much as the dependency on oil and gas imports does today.