Question

Advantages and disadvantages of urban plant location

Answer 1

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Answer 2

Plant location refers to the selection of a site for the setting up of an enterprise. The best location is the one that is cost-effective with the least risk. The factors affecting plant location are the availability of raw materials and labour, supply of capital, transport facilities, and other natural factors.

The advantages of urban plant location -

• Exceptional transport facilities for the free movement of raw materials.
• Increased availability of skilled labourers
• Good municipal facilities, such as fire fighting, waste management, police protection, and drainage, among others.
• Availability of banking and capital facilities
• The presence of various markets in the vicinity will also add to the advantage.
• The disadvantages of urban plant location -

• Escalated cost of land
• High cost of labour due to quality lifestyle
• Less space to keep facilities

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