Why do large - scale Industries choose different locations?
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Large Scale industries choose different locations so that they are able to get easy accessibility to markets, raw materials, labour supply, sources of energy and agglomerate economies
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Factors which influence the location of industries are:
Access to Market: Industries are located where there is a good market for the sale of their goods/products. The term ‘Market’ refers to an area where people who have a demand for goods and also have the ability to purchase, purchases goods from the sellers. The developed regions of Europe, North America, Japan and Australia provide large global markets as the purchasing power of the people is very high. The densely populated regions of South and South-east Asia also provide large markets. Other industries such as aircraft industries or arms industries also have a global market.
Access to Raw Material: Raw material used by industries should be cheap and easy to transport. Industries based on cheap, bulky and weight-losing material (ores) are located close to the sources of raw material such as steel, sugar, and cement industries. Perishability is also a vital factor for the industry to be located closer to the source of the raw material therefore agro-processing and dairy products are located close to the raw material source like farms.
Access to Sources of Energy: Industries which use more power are located close to the source of the energy supply such as the aluminium industry. Earlier coal was the main source of energy, today hydroelectricity and petroleum are also important sources of energy for many industries.
Access to Transportation and Communication Facilities: Quick and efficient transport facilities to carry raw materials to the factory and to move finished goods to the market are essential for the development of industries. The cost of transport is also an important factor in the location of industrial units. Western Europe and eastern North America have a highly developed transport system which has always induced the concentration of industries in these areas. Communication is also an important need for industries for the exchange and management of information.
Access to Labour Supply: Labour supply is an important factor in the location of industries. Some types of manufacturing industries still require skilled labour. Increasing mechanisation, automation and flexibility of industrial processes have reduced the dependence of industry upon the labours.
Access to Market: Industries are located where there is a good market for the sale of their goods/products. The term ‘Market’ refers to an area where people who have a demand for goods and also have the ability to purchase, purchases goods from the sellers. The developed regions of Europe, North America, Japan and Australia provide large global markets as the purchasing power of the people is very high. The densely populated regions of South and South-east Asia also provide large markets. Other industries such as aircraft industries or arms industries also have a global market.
Access to Raw Material: Raw material used by industries should be cheap and easy to transport. Industries based on cheap, bulky and weight-losing material (ores) are located close to the sources of raw material such as steel, sugar, and cement industries. Perishability is also a vital factor for the industry to be located closer to the source of the raw material therefore agro-processing and dairy products are located close to the raw material source like farms.
Access to Sources of Energy: Industries which use more power are located close to the source of the energy supply such as the aluminium industry. Earlier coal was the main source of energy, today hydroelectricity and petroleum are also important sources of energy for many industries.
Access to Transportation and Communication Facilities: Quick and efficient transport facilities to carry raw materials to the factory and to move finished goods to the market are essential for the development of industries. The cost of transport is also an important factor in the location of industrial units. Western Europe and eastern North America have a highly developed transport system which has always induced the concentration of industries in these areas. Communication is also an important need for industries for the exchange and management of information.
Access to Labour Supply: Labour supply is an important factor in the location of industries. Some types of manufacturing industries still require skilled labour. Increasing mechanisation, automation and flexibility of industrial processes have reduced the dependence of industry upon the labours.
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