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Optimum location?

Optimum location?. The location that best satisfies the objectives of the company. For most, this will be the maximum profit location. Which factors influence the location of industry? (can you think of human and physical features).

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Optimum location?

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  1. Optimum location? • The location that best satisfies the objectives of the company. • For most, this will be the maximum profit location

  2. Which factors influence the location of industry?(can you think of human and physical features)

  3. Basically… all you have to be able to say is why put your industry in one place rather than another…

  4. Factors influencing the location of industry

  5. Factors influencing the location of industry: 1.Energy – often needed in manufacture of goods 2.Labour – the skill level and cost of workers is important. 3.Capital – businesses need money in order to get started. 4.Land – for secondary industry large areas of flat cheap land are often needed.  Room to expand is also preferred. 5.Raw materials – if these are heavy (e.g. coal, limestone ad iron ore) then the factory needs to be close to raw materials. 6.Transport – roads, rivers and rail offer ways for businesses to move inputs and finished products. 7.Government policy – government encourages investment 8.Markets– fragile goods need to be produced close to their market, bulky goods must also be close because of the cost of transport

  6. Fill in the table below:

  7. Secondary industry: SE BrazilCars!! E.g. Volkswagen • Focus of rail and road networks • Main airports and seapors • Has an important pipeline for oil and gas • Lots of other MNCs in this area of Brazil, not in the rest • Highest population density in this area • Highest educational and skill levels in the country • Raw materials located nearby (iron ore) • Energy rich area (oil, gas and fast flowing rivers for HEP) • Large market SE Brazil= economic core region!!

  8. Quaternary industry Cambridge • Flat land • Outskirts of city: room to expand • Attractive place to live, workers want to come • Well educated workforce nearby • Transport links, London: train, M11, A14 • Close to markets/London • Good links with the university • Addenbrookes hospital: links for developing medicines etc • Green site, built for purpose • Business park, lots of investment in the area

  9. Quiz • Tell me a location factor beginning with the following letters: L, L, T, M, R • What is meant by the optimum location? • Are human/physical factors more important for primary industry? Why? • What about for quaternary industry?

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