Consider the following three factors that may influence the location of PF's new factory. Which factor is likely to be the most important when deciding on the location? Justify your answer. - Availability of raw materials - Transport links - Government influence Availability of raw materials: . . . . . Transport links: . . . . . Government influence: . . . . . Conclusion: . . . . .

Justification might include:
- Availability of natural rubber as without raw materials PF cannot produce any output. So, it is essential that raw materials are nearby so the factory can always operate. Transport links are less important if the market is nearby as delays will not cause major problems if the journey is short. Government influence may only be important at the set-up stage of the factory so will not be helpful in the long run.
- Good transport links are essential as delays in deliveries of shoes to the market may lead to a decrease in customer loyalty.
- Government influence is most important as grants can significantly reduce the set-up and training costs for employees to manufacture shoes making it more likely to be a success.