Unit3.2 (industry) where should manufacturing activities be located? Flashcards
What is the advantage of the multi-point production?
Multi-point production enables the firm to take advantage of the benefits of different sites so as to lower the production cost s and increase profits
What is the corresponding factor in operation factor ?
Access to power Access to raw materials Access to labour Access to management Access to clients Access to markets
What are the corresponding factor of site factor ?
Land attributes
Communication system
What do we call the industries which need to be located near the power ?
Power-oriented industries
How have technological advancements affected the location importance of power to aluminium smelting?
The location importance of power to aluminium smelting has decreased, since improvements in electricity transmission-technology allow electricity to be transmitted by cables over a long distance.
Another example shows how technological improvements affect location importance of power to manufacturing industries?
Coal is the major power source for the iron and steel industry. With technological improvements, large cargo ships can transport the heavy and bulky coal over a long distance. (i.e. about advancements in anspoyt technology) Therefore, the location importance of power to the iron and steel industry has decreased
Where is the sugar mill likely located, near the source of raw materials or the market?
Raw materials: 8 tonnes
Product: 1 tonne
It is likely to be located near the source of raw materials .As the raw material is much heavier than the product (i.e. raw sugar), the transport costs of delivering the raw material to the sugar mill are higher than transporting the product to the market .Locating the sugar mill near the source of raw material helps save/reduce transport costs and thus increase profits.
What do we call the industries which need to be located near the raw materials ?
Raw material-oriented industries
Some food processing industries such as canned fruits manufacturing are also located near the source of raw materials. Why?
This is the raw materials (i.e. fruits) are perishable. By locating the industries near the source of raw materials, it helps keep the materials fresh.
How have technological advancements affected the location importance of perishable raw materials to the food processing industries?
The location importance of perishable raw materials to the food processing has decreased. It is because the refrigerating transport & technologies have been improved,perishable raw materials can be transported over a longer distance
What do we call the industries which demand for a lot of workers?
Labour-intensive industries
Besides costs, quantity and quality of labour, the presence of labour unions and the number of strikes are also important considerations when locating an industry. Why?
Strong labour unions and frequent strikes will delay production and thus increase production costs
Why some firms place the access to a good management team the most important location factor of all?
This is because a good management team is able to choose a low cost location, and to formulate strategies to expand the market. This helps lower production costs, promote growth and raise profits of the firm.
What is the benefit of locating the headquarters and R&D centres of a manufacturing firm near its clients?
By locating the headquarters and R&D centres near clients, a manufacturing firm can have face-to-face contact with its suppliers and consumers. They can maintain a close connection and get immediate feedback. The information collected can be provided to production plants for improvement.
What is the characteristic of the product of the following industry.
- Newspaper printing
- Car manufacturing
- Glassware manufacturing
- Diary manufacturing
- Newspaper printing:easily outdated
- Car manufacturing: heavy and bulky
- Glassware manufacturing : fragile
- Diary manufacturing: perishable
