Why is land an important factor in the evaluation of the country’s economy?
The land is a factor of very high importance. It can also be widely affected by factors such as cost. The cost of land fluctuates highly within countries. During Japan’s bubble economy of the late 1980’s, land values reached an astronomical $US 35000 per square foot in 1990. This bubble, should it happen again, would most likely lead to Japan seeing a downfall in the number of businesses setting up in their country.
Land can vary significantly in size, shape, access, and condition. The suitability of the land massively affects whether it is right to be used for any business. A luxury jewelry firm wouldn’t choose to situate a store halfway up a mountain whereas an outdoor activity center might. The land up a mountain might be perfect for base jumping or for skiing due to the cliffs and high gradients of the terrain, but a luxury shop would have close to no customers up on a mountain. Not only this but the steep land would be hard to level and build a shop on, let alone be easy to transport their goods to and from. It would be an unwise choice. A more suitable area for a jewellery firm would be to locate within cities such as London. The map shows where the jewellers Warren James is located around the UK.
As you can see, the majority of stores are located in cities such as London and Southampton. They are all close to major roads, with the exception of the Isle of Wight store, and are all located in the South. This is where the majority of their customers will be because of the levels of wealth in this region. This proves that land is an important factor when making location decisions.