Industrial Location

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Industrial Location by Mind Map: Industrial Location

1. Land

1.1. Flat

1.1.1. Yes very small overhead cost no need flatten land

1.2. Large area

1.2.1. enable easier expansion without incurring much cost

1.2.2. lower cost of land in large supply/abundance

2. Raw Materials

2.1. weight-losing indys

2.1.1. locate close to source of r.m reduce transportation costs maximise profits

2.2. perishable r.m

2.2.1. must be near to source ensure freshness of r.m cut down on transportation costs

3. Energy

3.1. near energy sources(eg. oil,coal)

3.1.1. indys requiring large supply of energy

3.2. constant supply of energy

3.2.1. no disruption may result in delay in production process

4. Water

4.1. uses

4.1.1. coolant for machinery

4.1.2. raw material

4.1.3. transportation at ports foreign export of products

4.1.4. hydroelectric generation

4.1.5. cleaning agent

4.1.6. biomedical indys clean water is impt

5. Capital

5.1. lower capital required

5.1.1. pre-built factory spaces

5.1.2. low-interests loans financial institutes

5.1.3. govt. grants

6. Labour

6.1. dependent on nature of indys

6.1.1. labour-intensive abundant and cheap labour

6.1.2. require specialised and highly-skilled labour located near universities or education institutions in areas with high literacy rate

7. Market

7.1. weight-gaining indys

7.1.1. set up near markets reduce transport costs

7.2. dependent on customers

7.2.1. sec. indys near markets ensure perishable products in fresh condition

7.2.2. tertiary indys locate near market success depends on ability to sell service needs to be convenient,accessible

8. Government

8.1. attract investors

8.1.1. peaceful political climate conducive for setting up business

8.1.2. supportive policies setting up indy estates granting of pioneer status which excempts company from taxation eg. S'pore,South Korea offer financial incentives(eg. tax exemptions and bank loans with low i.r) S'pore govt. encouraged TNCs to set up branches in 1970s with attractive incentive packages

8.2. determine location of indys

8.2.1. planning and development of indy estates and specialised parks infrastructure and facilities provided for companies to carry out their activities

8.3. restrict,limit certain indys

8.3.1. prevent uncontrolled growth of indys into residential,recreational areas establish Green Belt zones eg. in S'pore,polluting indys locate in certain areas known as 'B2 zones' pass laws

8.4. placed importance on quaternary indys

8.4.1. encourage and enhance value-added indys eg. Biopolis biomedical research hub

9. Transport

9.1. good transport system

9.1.1. increased accessibility with diff. nodes of transports source of r.m,indys,and market are linked production process not delayed

9.1.2. workers get to work punctually no delay in production

9.1.3. goods delivered faster new markets far away can be tapped

10. Technology

10.1. increasing connectedness between countries(eg. video conferencing, high speed communication lines)

10.1.1. setting up of overseas branches

10.1.2. outsourcing of work to other countries eg. HP services

10.2. quick transmission of info

10.2.1. infrastructure such as mass comm. media and internet access such location preferred by quaternary indys

11. Agglomeration

11.1. tendency for indys to concentrate in a region

11.1.1. pool of skilled labour build up

11.1.2. factories save on transport costs when it obtains r.m

11.1.3. existing indy linkages basic requirements available(eg. financial services,consultancies)

11.1.4. economies of scale bulk purchases

11.1.5. attract more businesses

12. Industrial Momentum

12.1. tendency of an indy to remain in a region though original facors are no longer impt

12.1.1. immobile plant and machinery selling them off would mean a loss

12.1.2. costly yo invest in new plant

12.1.3. skilled labour,supporting services built up over time

12.1.4. existing indy area may have gained reputation for production of certain goods