Industrial Location In An LEDC - Economic Development

Question 1

• what is the industry?
• where is it located
• PSD (1)

Answer 1

• palm oil production (primary and secondary industry)
• Malaysia and Indonesia, main island Borneo
• Malaysia and Indonesia produce 85% of the world’s palm oil

Question 2

Social factors affecting location (1)

Answer 2

Locals will do labour intensive work for low pay of $280 per month

Question 3

Economic factors affecting location

2

Answer 3

• since palm oil is such a key industry, accounting for 5% of Malaysian GDP, companies invest in it which provides the specific machinery for extracting (hydraulic and screw presses) and refining (flushing extractor) the oil palms
• easy export to main market of Europe and China

ECONOMIC FACTORS AFFECT LOCATION OF SECONDARY INDUSTRY

Question 4

Environmental factors affecting location (4)

Answer 4

• perfect humid, tropical climate for growing oil palms:
• 2000-4000mm annual rainfall
• 25-28 degrees average temperature
• vast untouched rain forests provide space for plantations

ENVIRONMENTAL FACTORS AFFECT LOCATION OF PRIMARY INDUSTRY

Question 5

Effects of deforestation and the use for Palm oil plantations (PSD + 3)

Answer 5

• Palm oil plantations take up 8 million hectares of land in Indonesia
• less land for Dayak people of Borneo to use for houses, agriculture (rice paddies and swiddens) and hunting
• loss of biodiversity (rainforest contains over 80 endemic species)
• destroys orangutang habitats (almost 80% have disappeared over the last 20 years)