&<–2/”>a >nbsp;
[su_heading size=”21″]Types of Industries[/su_heading]
Based on the value addition and tangibility broadly we can have three types of industries – primary industries,secondary industries and tertiary industries.
- Primary industries are usually very simple industries involving processing of raw materials to give input goods for secondary industries.
Here value addition is usually minimal and they are
usually material oriented.Scale of operation may be small or may be very large.Examples are: coal mining and washing, oil-refining,flour milling, Metal smelting, stone crushing, etc. - Secondary industries are very complex and diversified which took input from primary industries and add significant value to it in different processing stages.
The value additions are so significant that they may have a locational preference in favour of market.Secondary industries may again divided into heavy industries, Light industries, footloose industries, etc.
- a) Heavy industries are identified by nature of their bulkyproduct or very high capital inputs or units which mayhave high capacity to influence Environment adversely.Examples are: heavy chemical, heavy machinery,locomotive, shipbuilding, heavy electrical, etc.
- b) Light industries are less capital intensive and moreinclined to consumer products.
Products are usually lighter in weight, require lesspower, less polluting and can be established in small areas. - c) Footloose industries are those industries which nearly remain indifferent with locational aspects of plant.Their products are having very high value addition and smaller in size and so transportation cost is only a small fraction of total cost.These industries usually requires a very small production space, are usually less polluting and butrequires highly skilled workers.Examples are: watch, camera, diamond cutting,precision electronics, etc.
Tertiary industries are not related to production process.They are basically trade and Services providing industries.The scale of operation is so large that it is regarded as an Industry.Examples are: Banking industry, insurance industry, consultancy industry, etc.
[su_heading size=”21″]Factors of industrial location[/su_heading]
The factors affecting the location of industries are :-
- the availability of raw material,
- the availability of land,
- the availability of water,
- the availability of labour,
- the availability and consistency of power supply,
- the availability of capital,
- the availability of transport Network and market.
- Sometimes, the government provides incentives like subsidised power, lower transport cost and other Infrastructure-2/”>INFRASTRUCTURE so that industries may be located in backward areas.
[su_heading size=”21″]Distribution and changing pattern of iron and steel industry[/su_heading]
Although iron and steel manufacturing activity in India is very old, modern iron and steel industry started with the establishment of ‘Bengal Iron and Steel Works’ at Kulti in West Bengal in 1817. Tata Iron and Steel company was established at Jamshedpur in 1907. This was followed by ‘Indian Iron and Steel plant’ at Burnpur in 1919. All the three Plants were established in the private sector. The first public sector iron and steel plant, which is now known as ‘Visvesvarayya Iron and Steel works’, was established at Bhadrawati in 1923.
After independence a great focus was given for self dependence and investments were made in heavy industries. Three new integrated steel plants were established at Rourkela, Bhilai and Durgapur. Bokaro steel plant was established under public sector in 1964. Bokaro and Bhilai plants were set up with the collaboration of the former Soviet Union. Durgapur steel plant was set up in Collaboration with United Kingdom while Rourkela plant was established with the help of Germany.
The change in the spatial pattern of this industry is linked to the change in patterns of consumption, production and exchange of goods and services. This is dependent on the spatial organization and location of economic, transportation and Communication-systems/”>Communication systems that produce and facilitate the trade of the concerned commodities.
[su_heading size=”21″]Distribution and changing pattern of Cotton textile industry[/su_heading]
The industrial development in India began with the establishment of first successful modern cotton textile mill at Mumbai in 1854.Traditional cotton textile industry could not face the competition from the new textile mills of the West, which produced cheap and good quality fabrics through mechanized industrial units. Majority of cotton textile mills are still located in the cotton growing areas of the great plains and peninsular India.
The Muslins of Dhaka, Chintzes of Masulipatnam, Calicos of Calicut and Gold-wrought cotton of Burhanpur, Surat and Vadodara were known worldwide for their quality and design. But the production of hand woven cotton textile was expensive and time consuming. Hence, traditional cotton textile industry could not face the competition from the new textile mills of the West, which produced cheap and good quality fabrics through mechanized industrial units.
[su_heading size=”21″]Distribution and changing pattern of Sugar industry[/su_heading]
India is the second largest producer of sugar in the world after Brazil and is also the largest consumer. Today Indian sugar industry’s annual output is worth approximately Rs.80,000 crores.Most of the sugar mills are concentrated in six states, namely Uttar Pradesh, Bihar, Maharashtra, Tamil Nadu, Karnataka and Andhra Pradesh.
Over the period, sugarcane industry is gradually shifting from north Indian states to states in Peninsular India. Some of the important reasons are as follows:
1) The production of sugarcane per hectare is higher is Peninsular India. In fact, sugarcane crop grows well in the tropical Climate of south India.
2) The sucrose contents is higher in the tropical variety of sugarcane grown in the south.
3) The crushing season in south India is longer than in north India.
4) In south India most of the mills have modern machinery.
5) Most of the mills in Peninsular India are in cooperative sector, where profit maximization is not the sole objective
[su_heading size=”21″]Distribution and changing pattern of Petro- chemicals industry[/su_heading]
Petro-chemicals are derived from petroleum or natural gas.Products such as Toothbrushes, toothpaste, combs, hairpins, soap cases, plastic mugs, garments, radiocaes, ball point pens, detergents, electric switches, lipstick, insecticides, bags, bed covers, and foam are some of the goods made from petro-chemicals. The share of offshore crude oil production was about 50.2%. The remaining crude oil production was from 6 States viz., Andhra Pradesh (0.7%), Arunachal Pradesh (0.2%), Assam (12.1%), Gujarat (12.5%), Rajasthan (23.7%) and Tamil Nadu (0.6%).
Besides Vadodara, Gandhar, and Hazira in Gujarat and Nagathone in Maharashtra are other important centres of petro-chemical industry. India is self sufficient in the production of petrochemicals.
[su_heading size=”21″]Weber’s theory of industrial location-its relevance in the modern world.[/su_heading]
Weber’s main point was that the cost of transport (another theory on this) determined the location of industry. Therefore, he uses Von Thunen’s idea (that the cost of transport determines crop selection) and applies it to industry. Similar to Von Thunen, the weight of the raw materials and the weight of the end product (this difference is known as the material index) will determine the site of production depending upon how much the industry is willing to pay to get its product to the market (connecting to Christaller’s ideas of market area). Weber’s theory rest primarily on four such sites, what he calls industrial orientations
- Material orientation
- Labor orientation
- Transport orientation
- Market orientation
He analyzed the factors that determine the location of industry and classified these factors into two divisions. These are:
(i) Primary causes of regional distribution of industry (regional factors)
(ii) Secondary causes (agglomerative and deglomerative factors) that are responsible for redistribution of industry.
The three locational factors explained by weber in his theory of industrial location are:-
- Transport cost
- labour cost
- agglomeration economies
Weber uses the location triangle within which the optimal is located based on the three locational factors.
,
The localization of economic activities is the process by which economic activities are concentrated in certain areas. This can be due to a number of factors, including natural Resources, labor force, capital, infrastructure, market, government policies, technology, economies of scale, agglomeration economies, transportation costs, trade barriers, political instability, social unrest, Environmental Degradation, natural disasters, economic Recession, and pandemics.
Natural Resources are essential for many economic activities. For example, agriculture requires land, water, and sunlight. Mining requires Minerals. Manufacturing requires raw materials. And energy production requires fossil fuels or other sources of energy.
The labor force is another important factor in the localization of economic activities. A large and skilled labor force is necessary for many types of economic activity. For example, high-tech industries require a large number of highly skilled workers. And manufacturing industries require a large number of workers with a variety of skills.
Capital is also essential for many economic activities. Capital can be in the form of Money, equipment, or buildings. Businesses need capital to purchase equipment, hire workers, and build factories.
Infrastructure is the basic physical and organizational structures and facilities needed for the operation of a Society or enterprise, such as roads, bridges, Airports, water and sewer systems, and telecommunications networks. Infrastructure is essential for the efficient movement of goods and people, and for the provision of essential services.
A market is a place where buyers and sellers come together to exchange goods and services. The size and location of a market can affect the localization of economic activities. For example, a large market with a high demand for a particular product may attract businesses that produce that product.
Government policies can also affect the localization of economic activities. For example, government subsidies can make it more profitable to operate a business in a particular location. And government regulations can make it more difficult or expensive to operate a business in a particular location.
Technology can also affect the localization of economic activities. For example, the development of new technologies can make it possible to produce goods and services in new locations. And the development of new transportation technologies can make it easier to move goods and people between locations.
Economies of scale are cost Savings that occur when a business produces a large number of units of a product. Economies of scale can make it more profitable to operate a business in a particular location.
Agglomeration economies are cost savings that occur when businesses are located close together. Agglomeration economies can occur because businesses can share resources, such as labor and infrastructure. And agglomeration economies can also occur because businesses can benefit from the presence of other businesses, such as suppliers and customers.
Transportation costs are the costs of moving goods and people between locations. Transportation costs can affect the localization of economic activities. For example, businesses that produce goods that are heavy or bulky may be located near transportation hubs, such as Ports or airports.
Trade barriers are government policies that restrict the flow of goods and services between countries. Trade barriers can affect the localization of economic activities. For example, businesses that produce goods that are subject to high tariffs may be located in countries with low tariffs.
Political instability can make it difficult for businesses to operate in a particular location. Political instability can lead to changes in government policies, which can make it difficult for businesses to plan for the future. And political instability can also lead to violence and unrest, which can disrupt business operations.
Social unrest can also make it difficult for businesses to operate in a particular location. Social unrest can lead to protests and strikes, which can disrupt business operations. And social unrest can also lead to violence and looting, which can damage businesses and their property.
Environmental degradation can make a location less attractive for businesses. Environmental degradation can lead to pollution, which can damage the Health of workers and residents. And environmental degradation can also lead to the destruction of natural resources, which businesses may need to operate.
Natural disasters can damage businesses and their property. Natural disasters can also disrupt business operations. And natural disasters can also lead to the loss of life, which can disrupt the supply of labor.
Economic recessions can make it difficult for businesses to operate. Economic recessions can lead to a decrease in demand for goods and services, which can reduce sales and profits. And economic recessions can also lead to an increase in Unemployment, which can make it difficult for businesses to find workers.
Pandemics can make it difficult for businesses to operate. Pandemics can lead to a decrease in demand for goods and services, which can reduce sales and profits. And pandemics can also lead to an increase in absenteeism, which can disrupt business operations.
In conclusion, the localization of economic activities is a complex process that is affected by a variety of factors. The specific factors that are most important in a given location will vary depending on the type of economic activity and the specific characteristics of the location.
Factors of Localization of Economic Activities
- Natural resources: The availability of natural resources, such as land, water, minerals, and forests, can attract businesses to a particular location. For example, oil and gas companies are often located near oil and gas fields.
- Labor force: The availability of a skilled and affordable labor force can also attract businesses to a particular location. For example, many technology companies are located in Silicon Valley, California, because of the large pool of skilled workers in the area.
- Infrastructure: The availability of transportation, communication, and other infrastructure can also be a factor in the localization of economic activities. For example, businesses that rely on shipping goods often locate near ports or airports.
- Government policies: Government policies, such as tax breaks and subsidies, can also influence the location of economic activities. For example, many countries offer tax breaks to businesses that locate in certain areas.
- Markets: The availability of markets for goods and services can also be a factor in the localization of economic activities. For example, businesses that sell to consumers often locate near their target markets.
Issues and Problems
- Congestion: The localization of economic activities can lead to congestion, as more people and businesses move to a particular area. This can cause problems with traffic, housing, and pollution.
- Inequality: The localization of economic activities can also lead to inequality, as some people and businesses benefit more than others. This can create social unrest and political instability.
- Environmental degradation: The localization of economic activities can also lead to environmental degradation, as businesses and factories pollute the air, water, and land. This can harm human health and the natural environment.
- Loss of jobs: The localization of economic activities can also lead to the loss of jobs, as businesses move to other areas with lower costs. This can cause economic hardship for workers and their families.
Question 1
Which of the following is not a factor of localization of economic activities?
(A) Natural resources
(B) Labor force
(C) Capital
(D) Market
(E) Government policy
Answer
(D) Market
Explanation
Market is not a factor of localization of economic activities. It is a factor of Globalization/”>Globalization-3/”>Globalization of economic activities.
Question 2
Which of the following is not an issue or problem associated with localization of economic activities?
(A) Environmental pollution
(B) Traffic congestion
(C) Social inequality
(D) Economic Growth
(E) Loss of jobs
Answer
(D) Economic growth
Explanation
Economic growth is not an issue or problem associated with localization of economic activities. It is a benefit of localization of economic activities.
Question 3
Which of the following is not a way to address the issues and problems associated with localization of economic activities?
(A) Investing in infrastructure
(B) Implementing environmental regulations
(C) Providing social safety nets
(D) Promoting economic diversification
(E) Subsidizing businesses to relocate
Answer
(E) Subsidizing businesses to relocate
Explanation
Subsidizing businesses to relocate is not a way to address the issues and problems associated with localization of economic activities. It is a way to exacerbate the issues and problems associated with localization of economic activities.
Question 4
Which of the following is the most important factor in determining the location of economic activities?
(A) Natural resources
(B) Labor force
(C) Capital
(D) Market
(E) Government policy
Answer
(D) Market
Explanation
The market is the most important factor in determining the location of economic activities. Businesses will locate where they can sell their products or services at the highest price.
Question 5
Which of the following is the most common type of economic activity that is localized?
(A) Manufacturing
(B) Agriculture
(C) Services
(D) Mining
(E) Construction
Answer
(A) Manufacturing
Explanation
Manufacturing is the most common type of economic activity that is localized. This is because manufacturing requires a lot of capital and labor, which are often concentrated in certain areas.
Question 6
Which of the following is the most common type of economic activity that is globalized?
(B) Agriculture
Answer
(C) Services
Explanation
Services is the most common type of economic activity that is globalized. This is because services can be delivered over long distances, and they do not require a lot of capital or labor.
Question 7
Which of the following is the most common type of economic activity that is decentralized?
(D) Mining
Answer
(E) Construction
Explanation
Construction is the most common type of economic activity that is decentralized. This is because construction projects can be located anywhere, and they do not require a lot of capital or labor.