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Distance:

The distance to other business facilities is yet another essential consideration to reduce operating cost. Complementary business services are most likely to be better developed in the already existing industrial centres. Thus, the distance to the nearest business centre will also affect the location decision. According to Kuncoro (2000:5) “the distance variable also captures the need to cut transportation costs, particularly if most customers are in urban areas.” The same consideration applies if a reliable supply of direct inputs can only be acquired at the closely situated business centre in question.

Infrastructure, Energy, and Communication:

The lack of infrastructure services may be a large determinant when making location decisions. Recently South Africa has had many discrepancies regarding electricity supply and the reliability thereof, and the lack of electricity provision may force firms to generate electricity by itself, which would be an additional cost (Kuncoro, 2000:5). Glen (2008:40) also comply with this issue and states that the factor remains that South Africa’s cost of electricity is still competitive even after recent increases by municipalities and Eskom. It has to be noted that municipalities have an important role to play in providing an environment that is friendly to business. The rising demand for energy coupled with the steep rise in the cost of energy will add greater importance to energy availability and stability in selecting a location for investment.

Glen (2008:40) adds that the need for fast, reliable, cost-effective telecommunication is another key factor driving decisions about where to invest and do business. The growing importance of broadband and the relatively high cost thereof is an area that could be used for competitive advantage. Thus, the cost of electricity and telecommunication are imperative factors in determining business location decisions.

Traditional infrastructure (especially highways) remains the most important factor when location is at stake. Glen (2008:40) researched that industries involved in extractive productions (such as mining and oil) support this view as they receive ‘subsidised aid’ to improve their transport infrastructure. This is also why spending on the many upgrading infrastructure projects ahead of the 2010 FIFA World Cup bodes well to contribute to the overall competitiveness of the South African climate in general.

Population:

Local population could also be regarded as one measure of the size of the local market. Kuncoro, (2000:5) argues that a bigger population size is always coupled with urban areas. New firms are likely to locate in urban areas because local dem本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。