How the transport is an important factor in localisation of industries?
Answers
Answer:
Transportation us one of the most pivotal features which decide the location and the localization of industries. Because, cheap transportation is required to cut down the additional expenses of the industry.
Explanation:
For setting up an industry on local level various things are kept in mind. Companies set their local branches in relatively remote areas and this is known as localization of industries.
If one is to set any local branch of industry, they have to make sure how close it is from the place where raw materials are available, how cheap the labour is there and the third most important thing is that if transportation costs are affordable.
If the costs of transportation of raw materials to the factories are very high then company can be potentially in a loss. That's why they take proper care to calculate costs of transportation of goods before setting up factories or industries at local level. And, transportation plays one of most important roles in deciding location of industries.