chapter 2 - factors affecting the locagion of economic activities

What is meant by the location of economic activity?

The Geogrpahical place where an industry or business chooses to operate

Name the three types of factors that influence the location of economic activities

Physical factors

Human / economic factors

Environmental / political factors

What are key factors influencing location?

Climate

Relief

Natural resources

Water supply

Accessibility (rivers, ports for trade)

Human factors that affect industrial location?

Labour avails its and cost

Transport infrastrucutre

Proximity to markets

Capital investment

Tech

How do political or environmental factors affect location?

Government policies

Environmental regulations

Planning laws

Political stability

Why might a high tech industry locate near a university

Access skilled labour, research facilities, and innovation networks

Why do many industries locate near transport links?

To reduce the cost and time of moving raw materials and finished goods

Why are footloose industries different from traditional industries?

They are not tied to raw materials or specific locations - they can locate anywhere with good infrastrucutre and connectivity

Example of footloose industry

Software development or online retail

Why might a TNC locate in an LIC or MIC

Cheap labour

Fewer regulations

Government incentives

Raw materials or availability

What factors influence the location of tertiary and quaternary activites?

Good communication and internet access

Proximity to skilled workers

Access to clients/ customers

Clean, attractive environment

How does globalisation affect the location of industries?

Encourages outsourcing and relocation to lower - cost countries

Improves communication, making distant location viable

Increases competition, pushing firms to reduce costs

What is agglomeration?

Clustering of similar or related industries in one area for mutual benefit (Silicon Valley)