Question

What are the factors influencing the location of an industry?

Answer 1

Hint:Factors that facilitate the method of low-cost production and increased profit are taken into consideration to determine the location of an industry.

Complete Answer: Both economic and non-economic considerations are taken into account to determine the location of an industry. The main goal is to produce high-value products at low-cost input. There are several factors influencing the location of an industry, some are described below:
1. Availability of raw material close or near to industry is of crucial importance to reduce the cost of production of the industry. Therefore, most of the agriculture-based, petrochemical industries and forest-based industries are located nearer to the sources of raw material supply.
2. Availability of skilled labor at low cost is necessary in order to decrease the cost of production overall in the industry. Regions with skilled labor at low prices certainly increase the profit book for an industry.
Accessibility of markets means the location of industry in close proximity to the market in which the final product can be delivered is of important consideration to reduce the cost of transportation of bulky or heavy commodities.
3. The modes and rates of transport in the area and transport policy of the government considerably influence the location of industrial units as areas with good and affordable transportation helps the labor to have easy access to the industry.
4. The source of energy or fuel must be easily and affordably available to the industry and that too without any compromise. The availability of capital at cheap rates of interests and the inadequate amount is a dominating factor influencing industrial location.
5. Some factors like drainage facility, topography, water availability, disposal grounds, soil condition, etc also influence at certain levels for an industry.
Thus, these are some of the important factors or considerations that are taken to determine the location of an industry.

Note:Government intervention in planning the distribution of industries in cities in order to reduce pollution and for avoiding their heavy clusters to form in big cities, has become an important location factor for industries.