Question

List two ways geographic influences affect business in Australia?

1) By affecting transportation costs and logistics
2) By influencing consumer preferences and behavior
3) By impacting market competition and pricing
4) By shaping government policies and regulations

Answer 1

Geographic influences on business in Australia include high transportation costs and logistics due to the country's size and topography, and the shaping of consumer preferences and behavior based on localized geographic factors.

Step-by-step explanation:

Geographic influences affect business in Australia in several ways, two of which are particularly significant:

1. Transportation costs and logistics: Australia's vast and varied landscape, including the expansive outback and long distances between major urban centers, can lead to high transportation costs. This affects where businesses choose to locate their warehouses, factories, and stores. The need to efficiently move goods across the country, or from rural areas to export ports, is crucial for economic viability.
2. Consumer preferences and behavior: Australia's geography also influences the lifestyle and preferences of its residents. Certain goods and services might be more popular in coastal areas than in the interior, and vice versa. Understanding local markets and consumer behavior is essential for businesses, especially those engaging in marketing geography, to effectively target their audiences.

These geographic factors are crucial for companies to consider when setting up a new business, expanding their operations, or engaging in international trade. A clear understanding of how geography affects trade, cost structures, and consumer behavior is essential for making informed business decisions and avoiding costly mistakes.