Essay, Research Paper
Materials ·
In
19th cent, industry located close to raw materials (and sources of
power) due to immobility of the raw materials, which were heavy to move due to
expensive and inefficient transport. ·
Now,
materials can be described as ?footloose? as industry is rarely tied to the
location of raw materials. There is greater efficiency in the use of raw
materials, power is more mobile, transport networks have improved, as has
technology. ·
Industries
which need to be located near to raw materials are those using materials which
are heavy, bulky or perishable or which lose weight or bulk during the
manufacturing process. (Refer to Weber.) Power supplies ·
Early
industry tended to be located near to power sources. ·
Newer
forms of power were introduced and the means of transporting it were made
easier and cheaper. ·
This
locational factor has become less important. Transport ·
Weber?s
locational theory. ·
Transport
cost related to distance. ·
Networks
improved ·
Transport
cost were major consideration when locating an industry. However, now these
costs are approx. 2-3% of a firm?s costs. As a result, raw materials can be
transported further. Markets ·
Pull
of a market is more important than the location of raw materials and power
supplies. ·
Industries
will locate near to a market if the product is bulky, there are many linkages
involved, the product becomes more perishable after processing, the product is
sensitive to changing fashions, the product has a short life span, the market
is very large or if the market is wealthy.Labour Supply ·
Previously,
labour has been immobile. ·
Fewer
semi ? skilled workers. ·
Increase
in part time work and number of women working. ·
Availability
and skills of labour vary from place to place. ·
Greater
mobility of labour. E.g. can work in EU member states. Government
Policies ·
These
aim to even out differences in employment, income levels and investment within
a country. ·
1980s
? Enterprise Zones set up. ·
Additional
policies set up to help derelict areas. E.g. London Docklands, Liverpool,
Manchester. ·
Also
made attempts to attract foreign firms. E.g. Nissan, Toyota. Agglomeration
economies ·
Benefits
that a firm has by locating in an area. Firm can achieve external economies of
scale.