Question

Discuss the reasons why ghe Industries are located close to the raw material

Answer 1

Answer:

It is because industry can buy the raw materials in cheaper rate.

The nearer the availablity of raw materials the cheaper is the cost of transportation.

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Answer 2

Answer:

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1. Availability of raw materials:

In determining the location of an industry, nearness to sources of raw material is of vital importance. Nearness to the sources of raw materials would reduce the cost of production of the industry. For most of the major industries, the cost of raw materials form the bulk of the total cost. Therefore, most of the agro-based and forest-based industries are located in the vicinity of the sources of raw material supply.

2. Availability of Labour:

Adequate supply of cheap and skilled labour is necessary for and industry. The attraction of an industry towards labour centers depends on the ratio of labour cost to the total cost of production which Weber calls Labour cost of Index. The availability of skilled workers in the interior parts of Bombay region was one of the factors responsible for the initial concentration of cotton textile industry in the region.

3. Proximity to Markets:

Access to markets is an important factor which the entrepreneur must take into consideration. Industries producing perishable or bulky commodities which cannot be transported over long distance are generally located in close proximity to markets. Industries located near the markets could be able to reduce the costs of transport in distributing the finished product as in the case of bread and bakery, ice, tins, cans manufacturing, etc. Accessibility of markets is more important in the case of industries manufacturing consumer goods rather than producer goods.

4. Transport Facilities:

Transport facilities, generally, influence the location of industry. The transportation with its three modes, i.e., water, road, and rail collectively plays an important role. So the junction points of water-ways, roadways and railways become humming center's of industrial activity. Further, the modes and rates of transport and transport policy of Government considerably affect the location of industrial units. The heavy concentration of cotton textile industry in Bombay has been due to the cheap and excellent transportation network both in regard to raw materials and markets.