SECONDARY FACTORS

Weber disperse these factors into two:

Agglomerative Factors
Deglomerative Factors
Agglomerative Factor
It is an advantage or a cheapening of production or marketing which results from the
fact that production is carried on to some considerable extent at one place.
Agglomerative factors are the external economies. For e.g. development of
Industries,Banking,Insuance,Transport,etc. which result from concentration of Industries
at a particular place.
Deglomerative Factor
It is a cheapening of production which results from decentralization of production.
Deglomerative factor are the external dis-economies, e.g., rising in wage-rate ,or rents ,
taxes , cost of land ,etc. That arise due to excessive localization of Industries.
Measurement of Aglomerative
&
Deglomerative Factor
Index Of Manufacture = Total Manufacturing Cost Locational Weight
It is the ratio of manufacturing costs to the total weight of the product. Industries
with high Index tend to Agglomerate. While Industries with low Coefficient tend to
deviate from the point of minimum transport and minimum labour cost.

CRITICISM
The theory is based upon over-simplified and unrealistic assumptions.
The assumption that there are fixed centre of consumption is not fixed.
Transportation rates are uniform is objectionable.
Fixed Centre with unlimited supplies of Labour is not correct.
Webers Approach is lopsided and the selection of factors is arbitrary. The Theory does
not take into account factors like: Climate , Govt.Policies, Personal Likings,etc.