Human factors influencing industrial location

Question 1

How does capital play a role in the location?

Answer 1

Countries with a good reputation for business can attract FDI (Foreign Direct Investment)

Question 2

How does labour play a role in the location? (secondary sector)

Answer 2

A large workforce of skilled people with relatively low wage requirements

Question 3

How does labour play a role in the location? (quaternary sector)

Answer 3

Cambridge Science Park, locates near areas with a highly educated workforce (University of Cambridge)

Question 4

How does accessibility play a role in the location?

Answer 4

1] Perishable goods may need to locate close to an airport to export goods
2] Retail parks and out-of-town shopping centres locate close to motorways so customers can travel there
3] Factories making heavy and bulky goods need to be close to transport to reduce transport costs

Question 5

How do the markets play a role in the location?

Answer 5

Weight gain industries may locate production close to their sales market to reduce transport costs

Question 6

How does government policy play a role in the location?

Answer 6

1] Grants can encourage industry in certain areas
2] Countries opening up to investment can lead to an influx of FDI from TNCs
3] Trade blocs can locate in the EU so they can trade freely
4] Freeports encourage investment

Question 7

How does agglomeration play a role in the location?

Answer 7

Science and tech companies often locate near to each other as they need a similar workforce, knowledge and sometimes equipment.