GEOG 1HB3 Chapter Notes - Chapter 13: Offshoring, Root Mean Square, Industrial Revolution
4 Jan 2017
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Two levels are recognized: households produce and reproduce; as economic organizations they are decreasing importance, rms make up the commercial sector; manufacturing rms operate in factories. Industrial location theory explains why factories are located where they are. Relevant factors have included transport; distance from raw material sources, energy supplies, and the market; availability of labour and capital; the nature of the industrial product; internal and external economies; entrepreneurial uncertainty and government considerations. The location decision aims to maximize pro ts by minimizing costs or maximizing sales. Least cost theory developed by weber and published in 1909 is a normative theory that identi es where industries should be located. Weber concluded that industries locate at least costly sites determined by transport costs, labour costs, and agglomeration- deglomeration bene ts. Solving locational problems required de ning concepts such as material index, locational. Second major theoretical approach, centres on pro t maximization rather than cost minimization.
