secondary activities Flashcards

1
Q

Define factories

A

The place where conversion of products obtained from primary
activities into final products takes place, is called ‘factory’

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2
Q

Physical factors

A
  1. Climate
  2. Availability of raw materials
  3. Water and power supply
  4. Labour
  5. Transportation
  6. Site or availability of land
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3
Q

Climate

A

Industries cannot be developed in harsh climates such as very hot or humid and very cold
For eg: North India and NortH west india’s climatic conditions hinder the development of industries there
Also changes in climatic conditions such as frequent droughts also affect industries
In contrast, the climate of western coastal areas in congenial for development of industries

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4
Q

Labour

A

Different industries require different labour
For eg: construction, textile and mining industries require semi-skilled labour while ornament making, food-processing require skilled labour
In spite of mechanisation, industries still require a large workforce. therefore, labour colonies can be found near industries.

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5
Q

Availability of raw material

A

The raw material used by industries mainly comes from forests, farms, mines, fisheries, etc.
The location depends on type of raw material
The industries requiring perishable, heavy or weight losing raw material are located near the production area
eg: industries producing fruit are located near mahabaleshwar or nagpur

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6
Q

Water supply and power

A

All industries require water for various processes such as smelting, cooling, washing, etc. Therefore they are located near rivers, lakes,etc.
Industries require coal, electricity and oill for running machinery
Industries that require coal are located near mines as coal is heavy and bulky
Industries requiring electricity and oil need not be near the sources as it is easy to transport them through wires and pipelines

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7
Q

Transportation

A

Industries require adequate and cheap transportation
Industries that require perishable or heavy raw material are located near the sources to reduce costs
The cost and time required for transportation of goods is called economic cost
Non-perishable goods can be transported through cheaper means such as waterways

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8
Q

Site or availability of land

A

Land is required for development of industries. It needs to be flat and easily accesible.
Earlier industries were developed in urban areas but nowadays due to increasing rates and lack of land they are being developed in rural areas.
For eg: Lote parshuram industrial area near chiplun and chakan in pune

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9
Q

Economic factors

A
  1. Proximity to market
  2. Capital
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10
Q

Proximity to market

A

Nearness to market is essential for quick disposal of manufactured goods
Near markets are required for perishable and bulky goods
Some products become perishable and bulky after the manufacturing process such as cakes
Therefore the industries are located near the market
Near markets reduce the cost of transportation and enable the consumer to get the products at cheaper costs

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11
Q

Capital

A

Capital or huge investments are required for develoment of industries.’Industries are located where there are banking and financial facilities.’As a matter of fact, banking and financial facilities develop near industrial areas. Cities like mumbai, delhi, kolkata have better banking facilities. nowadays due to developent of facilities in rural areas, industries can be located there

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12
Q

Political factors

A
  1. Government policies
  2. Setting up SEZs
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13
Q

Government policies

A

The government may give boost to industries producing certain goods by giving several incentives. It may provide finance, land, water, transport and communication facilities at subsidised rates. It may promote industrialisation in economically backward regions with a view of developing these regions. It also provides tax concession, marketing consultancy, export and import facilities to industrialists and entrepreneurs, who establish industries in such regions. For example, the ‘D and beyond’ categories of Government of Maharashtra’s industrial policy. At the same time, government may also discourage location of industries in a particular area like coastal zones or ecosensitive areas

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14
Q

Setting up SEZs

A

Many governments support establishing such zones or regions which are specially developed for industrial production. In India, they are called Special Economic Zones (SEZs). They are specially
earmarked geographical zones, which can be developed by private sector or public sector or in a public-private-partnership
(PPP) model. These are mainly developed to boost export–quality production in the country. Such SEZs attract many industries to be set up there. For example, SEEPZ near Santa Cruz.

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15
Q

Other factors

A
  1. Split location
  2. Economies of scale or agglomeration
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16
Q

Split location

A

Sometimes, the different stages of production are decentralized and production is organized at different places for reducing transport costs. In mobile industries and automobile industries,
various parts of a commodity are made in different areas and assembled at one place. Splitting of the production of a commodity at different places reduces costs

17
Q

Economies of scale or agglomeration

A

Availability of various facilities lead to establishment of industries in a region. By using the available opportunities according to ‘economies of scale’, the region attracts more industries with time. Consequently, concentration or agglomeration of industries occurs in this region. As a result of this, the above-mentioned physical and economic factors have no influence on location. A special characteristic of such a region is that industries that are mutually complementary to each other are established here. For example, all over the world, places where iron and steel industries were located, saw the development of industries which use steel as raw material, viz. utensils, automobile accessories, locomotives, etc. This in turn led to establishment of carmanufacturing units, packaging industries, railway engine manufacturing industries, etc.Due to such agglomerations, new industries get more profit as compared to low investment due to ‘economies of scale’.

18
Q

Footloose industries

A

A footloose industry does not have a strong locational preference because the resources,production skills, and consumers on which it depends can be found in numerous places. Such a company may relocate anytime, hence the term footloose. The Internet and other forms of advanced communication technology have made location completely detached from both resource and market considerations. Some prominent examples of footloose industry are watch-making, diamond cutting, etc. Like the inputs, the output is lightweight and can be easily transported to the markets. Most of the footloose industries produce low volume and high-value outputs.

19
Q

define industrial regions

A

the pockets having high concentration of industries

20
Q

characteristic features of industrial regions

A
  1. agglomeration of industries
  2. dense population growth, large labour force
  3. employment to large working population
  4. large banking and credit facilities
  5. large network of transportation
  6. excellent communication facilities
21
Q

classification on the basis of source of raw material

A
  1. Agro - based industries : Agricultural produce is processed in this sector. For example, sugar mills, cotton textile mills, food processing units.
  2. Marine-based industries : These refer to allunits involved in the processing and canning of fish, fish products and other marine produces. For example, fish oil, ornamental objects, sea-shells,etc.
  3. Forest-based industries : Products from the forests are processed in this sector. Wood is made into paper or provides
    timber for various uses. The manufacturing of resins, gums, colours, dyes, fragrant oils and turpentine is forest – based.
  4. Mineral-based industries : They involve industries where manufacturing is based on mineral wealth, obtained through mining. Examples are petrochemicals, iron and steel, aluminium units, etc.
  5. Pastoral-based industries : These indusries depend upon animals for their raw material. Hide, bone, horn, shoes, dairy, etc. are some of the pastoral-based industries. For example, leather bags, chappals, shoes, etc. are made from leather while cheese, curd, sweets are made from milk. Silk clothes, woollen clothes, jackets, etc. are produced in these industries
22
Q

classification on the basis of capital investment

A

Large-scale industries : They require huge amount of capital, equipment and other infrastructure. In India, the industries requiring an investment of more than 10 crores are large-scale. Iron and steel, power, cotton textiles, etc. are large-scale industries.
Medium-scale industries: Here, investment in plant and machinery is more than 5 crores but does exceed 10 crores and investment in equipment more than 2 crores but does not exceed 5 crores.
Cycle, TV, radio
Small: Here, investment in plant and machinery more than 25 lakh but does not exceed 5 crore and investment in equipment is more than 10 lakh but not more than 2 crores. Bottles, paper, toys, etc
Micro industries: Here, investment in plant and machinery is not more than X 25 lakh and investment in equipments not more than X 10 lakh. pens, dairy, etc
Cottage or household: It is the most basic type of manufacturing
characterised by manual production, using locally available raw materials at a very small scale or at home. The goods are generally produced for consumption and for sale in the local markets. Little capital and transport cost is involved. Potters, weavers, blacksmiths, carpenters and craftspersons are some of the major groups engaged in a cottage industry. These industries require good skills. Some of these products have great demand abroad. Hence, they are exported. For example, Paithani Sarees, Indian quilts, etc.

23
Q

Based on nature of output

A

Basic industries or Heavy industries :
These are industries that produce material, which is in turn used for other industries. The iron and steel industry, for example,
makes steel for further use in the automobile, heavy machinery and other industries.
Consumer goods or Light industries :
These industries manufacture goods that are ready for direct consumption. Watchmaking, electronic goods, textile mills and pharmaceutical plants are examples.
Ancillary industries :
The industries which manufacture parts and components to be used by other industries for manufacturing heavy articles like trucks, buses, railway engines, tractors, etc. The final product of these industries is the raw material for other
industries. For example, nails, tyres, iron sills, iron sheets, etc.

24
Q

Based on ownership

A

Public sector : Public sector industries areowned by the State. The government makes all investments and the marketing of the goods produced is through government agencies. Bharat Heavy Electrical Limited (BHEL) is an example.
Private sector : Private sector enterprise is owned by a private individual or a partnership of private individuals. Profits derived from the sale of output belong to the individual,
who owns the manufacturing unit and who makes all the capital investments in it. The Tata Iron and Steel Company (TISCO) is the
example of private sector.
Joint sector : This involves an industry owned and managed jointly by the government and an individual or individuals or between two and more governments. The amount of investment and share of the profits depends on the level of involvement of both sides example. For example, MNGL (Maharashtra Natural Gas Limited).
Cooperative sector : A group of individuals pool resources to set up and manage an industrial venture on a cooperative basis. All profits and losses are shared among the members of the cooperative unit. Many textile, sugar and milk units function as
cooperatives. Example, AMUL.
MNCs : When operations of a privately owned industry or public-owned industry extend to more than one country, such industries are called multi-national corporation (MNCs). They have headquarters in the main country where they are registered. For example, Hindustan Lever in private-sector has it’s headquarters
in London. Factors like cheap labour, technical skills, lower cost of production, availability of market in other countries lead to establishment of such industries.

25
Q
A

Distribution depends upon various physical factors like climate, raw material, wate rna dpower supply, etc. and economic factors like proximity of market, capital and government policies.
Physical factors vary from region to region and economic factors vary from country to country. Industries are developed where physical and economic factors are favourable
For eg: in india, industries are developed in mumbai, chennai, kolkata, chota nagpur region while the rest is dependent on agriculture

26
Q

What are the major factors which have hindered the growth of industries in south america

A

Industries in the continent of South America are developed only in coastal areas of Brazil, Argentina, Chile and Peru. The hindrances in the growth of industries in South America are due to unfavourable physical factors such as dense forests in Brazil, deserts in interior parts of Argentina, and the Andes mountain range running along the west coast. Economic factors like limited capital, lack of modern technology and lack of transportation facilities etc., create hindrances in the development of industries. A comparatively low density of population and lack of markets are the other factors responsible to have hindered the growth of industries in South America.