A product's value-to-weight ratio affects location decision primarily because of its influence on:

Question

Quizplus · Accepted Answer

The value-to-weight ratio of a product has a significant impact on transportation costs. If a product has a lower value-to-weight ratio, it is generally more expensive to transport it over long distances, and it may make more sense to locate production closer to the market. On the other hand, if the value-to-weight ratio is higher, transportation costs may be less of a consideration, and the product can be produced at a more distant location.

A Product's Value-To-Weight Ratio Affects Location Decision Primarily Because of Its