Question

Explain any five factors affecting the location of industries in the world.

Answer 1

The following are some of the elements that affect where industries are located:

1. The existence of a market for manufactured goods is the most important factor in the location of industries. ‘Market’ means people who have a demand for these goods and also have the purchasing power (ability to purchase) to be able to purchase from the sellers at a place. Remote areas inhabited by a few people offer small markets. The developed regions of Europe, North America, Japan and Australia provide large global markets as the purchasing power of the people is very high.
2. Raw material used by industries should be cheap and easy to transport. Industries based on cheap, bulky and weight-losing material (ores) are located close to the sources of raw material such as steel, sugar, and cement industries.
3. Labour supply is an important factor in the location of industries. Some types of manufacturing still require skilled labour. Increasing mechanisation, automation and flexibility of industrial processes have reduced the dependence of industry upon the labours.
4. Industries which use more power are located close to the source of the energy supply such as the aluminium industry.
5. Governments adopt ‘regional policies’ to promote ‘balanced’ economic development and hence set up industries in particular areas.