Manufacturing And Related Service Industry Flashcards
How does site/land affect location of industries
- Located away from city centres where large flat, well drained sites are available such as iron industry in Belfast, UK
- Power stations which are seen as visually unattractive are found on the outskirts of cities. A good example is Drax power station in North Yorkshire which is 15 mils from York.
How does labour affect industrial location
- Certain people with certain skills will tend to locate and be concentrated in certain areas – this is sectoral spatial division of labour. A good example is Silicon Valley in California.
- The adaptability and reputation of the workforce. A good example is Toyota who are able to locate in every continent and train a local workforce.
How does capital affect industrial location
- The level of capital required to enter the market with a chance of success is so high.
How do markets affect industrial location
- When costs of transporting the finished product are significant, then a company will locate as close to the market as possible. A good example of this is Delta Beverages which is located in Southerton which is generally close to their market.
• Fashion and taste. A good example of this is Ford Motors, identified that Americans prefer larger cars more than Europeans.
How do raw materials affect location
- Industries that use heavy raw materials are expensive to transport. A good example of this is the iron ore in steel making, the industry located near to deep water ports to avoid higher costs of transport on land.
- In the UK sugar beet refineries are located in crop growing areas because there is a 90% weight loss in manufacturing
How does transport affect industrial location
- Industries locate often close to ring roads where supplies can be brought in easily.
- Access to an airport for high technology industries
Industrial agglomeration
The clustering together and association of economic activities in close proximity to one another
Benefits of industrial agglomeration
- Economies of scale - sharing resources and infrastructure such as transportation and utilities. A good example of agglomeration is Silicon Valley which is home to many technological companies in California. The agglomeration has lead to lower costs, innovation and large pool skilled workers and programmers.
- Encourage government investment. A good example is the Greater Toronto Area it is home to many large businesses. As a result of the high level of economic activity, the government of Ontario invested heavily in infrastructure projects in the region.
Disadvantages of industrial agglomeration
- A major source of pollution. A good example of this is Taiwan the industry produces large amounts of hazardous waste, and it has been criticized for its contribution to air and water pollution.
- Housing shortages: The high demand for housing in the north of Taiwan has led to housing shortages. This has made it difficult for people who work in the HSP to find affordable housing.
Industrial inertia
Industrial inertia is the tendency for industry to remain in its existing location even though the faciors which led to its location there no longer apply
Functional linkages
Linkages are the relationships between companies or industries, relating to how they are connected by their inputs, processes or outputs
Industrial estate
An industrial estate is an area zoned and planned for the purpose of industrial development.
Export processing zones
Industrial zones with special incentives set up to attract foreign investors.