Factors Affecting Locational Patterns Of Economic Activity

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.

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