Basic Location Factors
Location factors can be subdivided into three general functional categories:
  • Site. Specific micro-geographical (local) characteristics of the site, including the availability of land, basic utilities, visibility (for activities related to retail or prestige such as head offices), amenities (quality of life) and the level of access to local transportation (such as the proximity to a highway). These factors have an important effect on the costs associated with a location.
  • Accessibility. Include a number of opportunity factors related to a location, mainly labor (wages, availability, level of qualification), materials (mainly for raw materials dependent activities), energy, markets (local, regional and global) and accessibility to suppliers and customers (important for intermediate activities). These factors tend to have a meso (regional) connotation.
  • Socioeconomic environment. Specific macro-geographical characteristics that can to apply to jurisdictional units (nation, region, municipality). They consider the availability of capital (investment, venture capital), various subsidies and incentives, regulations, taxation and technology.
The role and importance of each factor depends on the nature of the activity which locational behavior is being investigated.