Geography plays a role in the decision making process of firm location because firms often try to minimize risk by selecting geographically adjacent or culturally similar environments.

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Geography can impact the decision making process of firm location as it can affect factors such as transportation costs, access to resources, and the demographic and cultural makeup of the area. Firms may prefer to locate in areas that are geographically close to their suppliers or customers, or in areas where the culture and language are familiar to them. This can help to minimize risks and increase efficiency.

Geography Plays a Role in the Decision Making Process of Firm