There are many factors that affect the choice of location of industries in the world. These factors are as follows:
1. Access to the market – The proximity of market for the finished goods should be close to the location of production. Here by market we mean that the goods produced must be demanded by the people in that location. If the industry is set in a remote area then the market for its products is also small. Developed countries like Europe, North America, Japan and Australia have large markets where people have high purchasing power.
2. Access to raw material – Raw material is an important factor in determining the choice of location. The best location would be the one where cheap and easy raw materials can be obtained. The industries whose raw materials are bulky and weight-losing must be located close to its source like the steel, sugar and cement industry. Even industries requiring perishable raw materials like sugarcane are also located close to source. For agro-processing and dairy products the location is set either close to the source of produce or location of milk supply.
3. Access to labour supply – Industries require different types of labour varying from unskilled, semi-skilled to skilled ones. With the advancement in technology, mechanisation, automation and flexibility of processes, industries now require less labour.
4. Access to source of energy – Heavy power using industries like the aluminium industry must be located close to the source where supply is regular. Today hydroelectricity and petroleum are becoming significant sources of energy by replacing the traditional usage of coal.
5. Access to transport and communication facilities – When the access to transport and communication facilities is easy and efficient then the raw materials can be carried to the factories and finished products to the markets on time. But the cost associated with transportation must also be considered before setting up any industry. Better transport facilities lead to economic development and specialisation of various regions.
6. Government policy – Government usually adopts regional policies for promoting balanced development of the economy and also sets up industries in certain areas.
7. Access to Agglomeration economies – The benefit that an industry derives because of being located near leading industries and other industries is called agglomeration economies. This also leads to savings because of links with different industries.
The main characteristics of ‘Footloose Industries’ are as follows:
1. They are spread widely across different places. The most important factor which affects them is their location accessibility by road.
2. These industries do not depend on any specific raw material, weight losing or otherwise.
3. The functioning of these industries largely depends upon the availability of component parts that are easily obtained.
4. They are engaged in small scale production and therefore require small labour force.
5. These industries generally do not contribute to pollution.
Rate this question :