Theory locations9/23/2023 ![]() It is primarily true for the products which are heavy and cheap. Transport cost is a major factor which controls the industrial location.Similarly, availability of demand and other factors of production determines the location of the weight gaining industries. An industry prefers a location near the raw material the raw material is weight losing. The importance of nature and weight of raw material is still a factor which determines the location of industries.Despite wide criticism, this theory is relevant in many ways as following. It became the foundation of other location theories during the quantitative revolution in the 1950s. Industrial location theory was a step in the right direction in locational studies. 1: Impact of Labor Cost on Industrial Location Relevance of Industrial Location Theory In this article, we will focus on the relevance and criticism of industrial location theory. For details read Theory of Industrial Location. 1) or externalities outweighs the effect of transport cost. The producer will only consider an alternate to least transport cost location only when labor cost (Fig. ![]() In conclusion, this theory considers transport cost as an overarching factor which controls the location of the industries. It is also known as Least Cost Theory because this theory tries to find a location of least cost for an industrial location. Weber combined economic parameters with spatial parameters to arrive at a profitable location for industries. Alfred Weber, a pioneer of locational analysis in Geography, introduced the Theory of Industrial Location in 1909.
0 Comments
Leave a Reply.AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |