Factors affecting location decisions

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Factors affecting location decisions by Mind Map: Factors affecting location decisions

1. Access to labour

1.1. Labour supply

1.1.1. Insufficient

1.1.2. Abundant

1.1.2.1. eg. labour-intensive industry

1.2. Labour costs

1.2.1. Low

1.2.1.1. eg. labour-intensive industry

1.2.2. High

1.2.2.1. eg. high-tech industry

1.2.2.2. presence of labour union

1.2.2.3. frequent strikes

1.3. Labour skills

1.3.1. semi-skilled

1.3.1.1. eg. labour-intensive industry

1.3.1.2. eg. assembling process in LDCs

1.3.2. skilled

1.3.2.1. eg. high-tech manufacturing firms

2. Access to markets

2.1. Heavy and bulky

2.1.1. eg. automobile manufacturers

2.2. Perishable

2.2.1. eg. bakery

2.2.2. eg. brewery

2.3. Fragile

2.3.1. eg. glassware-making industry

2.4. Up-to-date

2.4.1. eg. newspaper industry

3. Access to business partners

4. Transport and telecommunications

4.1. Transport network

4.1.1. Railway

4.1.2. Highway

4.1.3. Transported by air

4.1.4. Shipping

4.2. Telecommunications

4.2.1. exchange of information

5. Access to management

5.1. cut production costs

5.2. maximise profits

6. Footloose industries

6.1. industries that are not bound by the locational factors

6.1.1. relatively free choice of location

6.1.1.1. eg. IT industry

7. Government policy

7.1. Capital

7.2. Land

7.3. Infrastructure

7.4. Research & Development

7.5. Protection of intellectual property

7.6. Trade protectionism

8. Availability of capital

8.1. Financial capital

8.1.1. Capital-intensive industry

8.1.1.1. eg. Heavy industry

8.2. Venture capital

8.2.1. mainly used in R & D

8.2.1.1. eg. High-tech industry

8.2.2. high growth potential

8.2.3. usually obtain in large cities

8.2.4. provided by professionals and outside investors

9. Land attributes

9.1. Land area

9.1.1. Small

9.1.2. Large

9.1.2.1. eg. Heavy industry

9.1.2.1.1. installation of heavy machines

9.2. Land price

9.2.1. Low

9.2.1.1. eg. Heavy industry

9.2.1.1.1. installation of heavy machines

9.2.2. High

9.2.2.1. eg. High-tech industry

9.2.2.1.1. suburban industrial parks

9.3. Relief

9.3.1. Flat

9.3.1.1. eg. Heavy industry

9.3.1.1.1. installation of machines

9.3.2. Rugged

9.4. Location

9.4.1. Inland

9.4.2. Coastal

9.4.3. Proximity to universities and research institutes

9.4.3.1. eg. High-tech industry

9.4.4. Proximity to river water

9.4.4.1. eg. Iron and steel industry

9.4.4.1.1. access to river water for cooling process

10. Access to raw materials

10.1. Heavy and bulky

10.1.1. save transport costs

10.1.1.1. eg. iron and steel industry

10.2. Perishable

10.2.1. avoid costs of preserving raw materials

10.2.1.1. eg. canned-fish manufacturing

10.2.2. keep the raw materials fresh for processing

10.2.2.1. eg. sugar mills close to sugar cane fields

10.2.2.2. eg. food processing

10.3. Weight-losing industry

10.3.1. the product loses weight during the production processes

10.3.1.1. eg. sugar-refining industry

11. Access to power resource

11.1. coal

11.1.1. heavy and bulky

11.1.1.1. save transport cost

11.2. electricity

11.2.1. eg. aluminium smelting

11.2.1.1. close to hydroelectric power(HEP) plants

11.2.1.1.1. HEP is difficult to be transported

11.2.1.1.2. massive amount of energy consumption

12. Technology and innovation

12.1. Advancements in production technologies

12.1.1. use fewer raw materials

12.1.2. use substitutes

12.1.3. use fewer power resources

12.1.4. automation in production

12.1.4.1. eg. the use of robots

12.2. Advancements in transport technologies

12.2.1. bulk carriers

12.2.1.1. large capacity to transport heavy and bulky raw materials and power resources at low costs

12.3. Advancements in refrigeration technologies

12.3.1. enable perishable finished products to be delivered over a longer distance

12.4. Advancements in electricity transmission technologies

12.4.1. enable electricity to be transmitted over a long distance at low costs