Location factors can be subdivided into three general functional
The role and importance of each factor depends on the nature of the
activity which locational behavior is being investigated.
- 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
- 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.