Factors Influencing Global Industry Location
The factors which influence the global industry locations include:
Historical Factors
Manufacturing is influenced by all developed countries which are dependent heavily on their history and the evolution of many European communities has influenced the development of industries. The subsidiary industry refers to those which use a certain by-product from that of the primary industry.
Geographical Factors
The geographical factors include the following factors:
- Natural and Climatic Conditions: Natural and climatic conditions include different features like the topography of an area, water facilities, drainage facilities, and so forth.
- Availability of Resources: Raw materials availability is very important and the location of raw materials and resources is responsible for the location of industries.
- Availability of Resources: Raw material is most important and availability of raw materials is important.
- Transportation: Transportation infrastructure is important in the placement of industry which includes roadways, waterways, and railways.
Other Factors
Other factors include the availability of labor, consumer proximity market, areas of agglomeration, and others like low transport costs, geographic advantages, labor pooling, and matching.
Major Industrial Regions of the World
Industrial areas are concentrated in particular areas because of favorable geo-economic conditions. These are areas in which the manufacturing industries tend to operate on a large scale basis and also employ a large part of the population. The distribution of industries denotes a localized trend in a few areas which are referred to as “industrial regions”. Some of the most important industrial regions include Western and Central Europe, eastern Europe, eastern Asia, and Eastern North America. Seaports and coalfields are areas of major industrial regions.