Question

"Large scale industries are established at different locations for maximising profits by reducing costs." In the light of this statement, examine the factors influencing the industrial location.

Hint:

List at least five factors (market, raw material, labour, power/transport, government policy) and tie each to lower cost.

Answer 1

Step 1: Understand the idea:
A factory owner picks a site where total cost is lowest and profit highest. Many factors decide this.

Step 2: Factor 1: Market:
Goods need buyers. Industries near big markets save on transport, as in consumer goods and perishable items.

Step 3: Factor 2: Raw material:
Industries using heavy, weight-losing materials, like iron and steel, locate near the mines. Sugar mills stand near cane fields.

Step 4: Factor 3: Labour:
Skilled and cheap workers are needed. Some industries like electronics need skilled labour, and others like textiles need plenty of cheap labour.

Step 5: Factor 4: Power and transport:
Aluminium needs cheap power and so is located near power sources. Good roads, railways and ports cut cost of moving goods.

Step 6: Factor 5: Government policy and agglomeration:
Tax relief, cheap land and special economic zones bring industries into backward areas. Clusters of firms share services and cut costs (agglomeration economies).

Final Answer:
Industrial location depends on market, raw material, labour, power, transport and government policy, together with agglomeration economies, since each helps reduce cost and raise profit.