Unit 2: What are the factors affecting the location of the manufacturing industry? Flashcards

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1
Q

locational factors of manufacturing industries

A
  1. site factors
  2. operation factors
  3. socio-economic factors
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2
Q

site factor definition + examples

A

geographical characteristic of a site that have an effect on the development of the industry
1. land attributes
2. transport + telecommunications

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3
Q

operation factors definition + examples

A

related to a particular location in a region -> makes it possible for manufacturing activities to benefit
etc. access to:
1. labour
2. markets
3. raw materials
4. power/electricity
5. clients
6. management

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4
Q

socio-economic factors definition + examples

A

socio-economic quality in a region / country -> explains how business environment is formed
etc.
1. capital
2. government
3. technology + innovation
4. agglomeration

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5
Q

land attributes for comparison

A
  1. land area
  2. land price per land area
  3. relief
  4. importance of land attributes to the industry
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6
Q

heavy industry vs light industry in terms of land attributes

A
  1. land area
    larger vs smaller
  2. land price per land area
    lower vs can afford higher land price
  3. relief
    extensive flat land vs flat land but manufacturing activities can be carried out in multi-storey factories
  4. importance of land attributes to the industry
    more important vs less important
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7
Q

example of heavy industry

A
  1. iron + steel industry
  2. car-manufacturing industry
  3. refining industry
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8
Q

example of light industry

A
  1. electronics industry
  2. textile + clothing industry
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9
Q

What are the characteristics of good communication systems?

A
  1. An effective transport network for the flow of materials and people
  2. An effective infrastructure of telecommunications such as satellite, telephone, radio and computer networks
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10
Q

transport + telecommunications in factors affecting the locations of the manufacturing industry

A
  1. Site conditions for warehouses and distribution centres are close to highways, ports, airports and cargo facilities due to high accessibility.
  2. The headquarters of manufacturing is located in MDCs with efficient telecommunications which enables efficient information exchange with branch offices and production plants.
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11
Q

access to labour in factors affecting the locations of the manufacturing industry

A

Considerations also include the presence of labour unions and strikes
if labour unions in a place are strong + there are frequent strikes -> production cost increases

with technological improvements -> more and more factories adopt automation
i.e. the use of machines and robots to replace manual labour.

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12
Q

What are the considerations of hiring labour

A
  1. Cost of labour
  2. Quantity of labour (labour-intensive industries)
  3. Quality of labour
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13
Q

access to market in factors affecting the locations of the manufacturing industry + advantage

A
  1. Weight gain / Market-oriented industries: The weight of raw material inputs -> smaller than the weight of product outputs -> tend to be located near the market
  2. Industries manufacturing products that are perishable and fragile -> also located near the market

Advantage: reduce transport costs -> therefore increase profit

improvements in transport (e.g. refrigerated trucks) -> the importance of markets as a locational factor declined

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14
Q

Access to raw materials in factors affecting the locations of the manufacturing industry + advantage

A

Weight loss / Raw material-oriented industries: weight of raw material inputs -> greater than the weight of product outputs -> located near the source of raw materials.

Advantage:
Help reduce transport costs -> increase profit

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15
Q

Access to power / electricity in factors affecting the locations of the manufacturing industry

A

past -> power supply immobile -> located near places where power supplies were inexpensive + reliable
-» industry -> power-oriented industry

improvements in bulk carriers + electricity transmission technology -> the importance of power supply as a locational factor decline

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16
Q

Access to clients in factors affecting the locations of the manufacturing industry

A

-> important for the headquarters and R&D centres of manufacturing firms.

require face-to-face contact with suppliers and customers to gather information + feedback for improvement.

17
Q

Access to management in factors affecting the locations of the manufacturing industry + advantage

A
  1. An innovative and qualified management team
  2. Formulate strategies of a manufacturing firm
18
Q

Capital in factors affecting the locations of the manufacturing industry

A

capital-intensive industries -> usually attracted to or near large cities

recent years -> rapid growth of venture capital
private equity capital provided by entrepreneurs + outside investors -> finance the creation of new + growth businesses
e.g. IT and pharmaceutical industries

high-tech manufacturing -> availability of venture capital an important locational factor

19
Q

Government policies in factors affecting the locations of the manufacturing industry

A

Strong influence on the location of industries in some countries
In Hong Kong -> good infrastructure provided for high-tech industries

20
Q

Access to business partners in factors affecting the locations of the manufacturing industry + advantage

A

important -> the headquarters + R&D centres of manufacturing firms
require face-to-face contact with suppliers + customers -> gather information + feedback for improvement

21
Q

Access to Technology and innovation in factors affecting the locations of the manufacturing industry + advantage

A

-> a great impact on the location of modern industries
-> Raise efficiency and productivity

22
Q

Agglomeration in factors affecting the locations of the manufacturing industry + advantage

A

some industries or firms -> tend to locate at the same location forming an industrial cluster / industrial agglomeration
T
benefits that agglomeration offers are called agglomeration economies which help cut cost and increase profit.
 The sites where industries cluster often possess favourable locational factors for industries.

23
Q

the two types of capital

A
  1. Financial capital, i.e. money
  2. Fixed or physical capital, i.e. plants and machinery
24
Q

capital-intensive industries meaning

A

Industries that require a large amount of capital to start

25
Q

venture capital meaning

A

a kind of private equity capital provided by entrepreneurs and outside investors to finance the creation of new and growth businesses

26
Q

How do government policies facilitate the development of industries?

A
  1. reduces land rent
  2. provides loan with low interest rates
  3. improves infrastructure + facilities
  4. provides tax cuts
  5. protects the parent of inventions
27
Q

Agglomeration economies

A

Share:
1. sources of innovation
2. supporting services and facilities
3. common markets

enjoy an already:
4. well-established linkages with local manufacturers
5. well-developed infrastructure

Lower:
6. transport costs
7. production costs

  1. Attract skilled labour
28
Q

How do technological advancements make the role of the following locational factors less
important?

A
  1. Transport
    technological advancements -> transport cost of bulky + heavy raw materials + products -> lowered
    Large cargo ships -> used to transport bulky and heavy raw materials
  2. Raw materials
    technological advancements -> fewer raw materials are needed -> Substitutes can be used
    -» The transport costs of moving raw materials from source places to industrial location -> lowered
  3. Labour
    technological advancements -> factories can adopt automation ->’reduces the demand for labour
  4. Power
    technological advancements -> less coal needed for generating power in the production processes -> improvement in electricity transmission technologies -> lowered the importance of power as a location factor