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Geography Industry

Location
Industries seek to set up at places where they can operate at least cost and
maximum profits

They consider two factors Physical factors and Human factors

Physical factors:
1. Land
• Land is the space where people carry out their activities
• Industries prefer to set up on level land that is large in level
1. Raw materials
• Raw materials are inputs for production and manufacturing
• Primary industries prefer to set up near the source of raw materials
• Secondary industries consider the cost of transportation
• If the raw materials is heavier than the final products, they will set up
near the source, and vice-versa ( E.G. Logs are heavier than furniture)
• If the raw materials are perishable (E.G. Fish), the industry will also be
near the source
1. Energy
• Energy is the power for the factory to operate
• Industry with high energy consumption will be near energy sources
(E.G. Power plants)
• Industries prefer to be in places with a constant supply of energy

Human factors:
1. Capital
• Capital is the financial resources needed to set up and run an industry
• Industries prefer to set up a places with low capital needed
• E.G. pre-built factory spaces, low interest loans, government grants
1. Labour
• Labour is the workers needed to run the industry
• Labour-intensive industry prefer to be located near cheap and
abundant labour
• Highly-skilled labour industries prefer to be located in places with high
literacy rates.
1. Market
• Market is the demand for the products
• Primary industry???
• Secondary industries prefer to be near their markets when the
products are perishable or heavier than raw materials
• Tertiary industries prefer to be near their markets as they need to sell
their service, thus they must be convenient and accessible to people
1. Government
• The government decides the suitable type of industry, where should
they be located and how to encourage the growth of the industry
• To attract, there are financial incentives (E.G. tax exemptions, grants,
low-interest loans)
• To limit, there are restrictions such as Green Belt zones ( no pollution
industries)
1. Transportation
• Transportation is the movement of people and goods from here to
there
• Transport is used to move raw materials and products
• Industries prefer to set up at places with a cost-effective transport
system
1. Technology
• Technology is the amenities the area have
• E.G. power cables to supply power, telecommunication system to
connect people

Trend of transference
It is the global shift of large-scale manufacturing industries from 1960s to mid-
1990s.

Reasons:
1. Competitive advantage
○ Lower costs
 Cheap and abundant labour in LDC’s
 Cheaper land and more readily available
○ Government incentives
 Tax exemption to help reduce costs
 Free Trade Zones (FTZ) are areas where government
requirements are lowered and incentives are given
 Special Economic Zones (SEZ) are FTZ areas set up to attract a
certain industry
○ Large market
 More profits as products can be sold to a bigger market
1. Space shrinking technology
○ Reduction in time needed to travel and shipping of goods
 Cargo ships are more cost-effective than air transport
 They can transport large amounts of good over long distances
○ Commercial jet aircrafts
 Travelling has been made much easier and more convenient
 Making possible the transportation of perishable goods
1. Containerization
○ Using standard-size containers, the loading and unloading of goods
have become faster and more efficient
1. Communication technology
○ Communication is the transmission of information from a person to
another person
○ Technology has made communication between people faster and more
convenient

Impact:
1. Shift in manufacturing-related jobs from DC to LDC
○ Few workers in such industry are hired in DC, more in LDC
1. Increase foreign investment in LDC
○ More $$ goes in the country’s economy
○ When industries move to LDC, they bring along their technology
1. Increase in export of manufactured products in LDC
○ Exports of manufacturing products in LDC have increased significantly
○ More income
1. Growth of NIE
○ LDC that are affect by trends of transference enjoy rapid growth in
their manufacturing industry, resulting in industrialisation

Newly Industrializing Economies (NIE)


1. Rise of NIE
 Technological advancement have broken down physical barriers
 Thus world is more interconnected  Globalization
 Globalization has allowed companies to do business on a global scale
 TNC set up base in LDC
 Country’s industrialisation level increase, becoming NIE
1. Characteristics of NIE
 NIE are countries that are LDC, but have been highly successful in
industrialisation
 They have rising growth in manufacturing, rising GDP, Rising share of
world exports
1. Why India
 Land
♦ Electronic industry important sector of India’s economy
♦ Large industrial parks were being expended
♦ More land for industries
 Skilled labour
♦ Rising literacy rates
♦ Abundance of skilled labour at low costs
 Government policies
♦ There are SEZ to offer incentives like tax exemptions
♦ Company subsidies for training of employees
♦ Special concession and privileges for new companies
 Market
♦ Electronic industry was focused on India’s local market.
♦ There was strong demand for consumer electronics and
household appliances
1. Electronic City (Bangalore)
 Industrial clustering of electronic firms
♦ Ease of getting components and services from other companies
♦ Pooling of labour resources
♦ Sharing of knowledge to increase productivity and efficiency
 Transport network
♦ There are major roads connected to city center, airport and
railway
 Market
♦ Large domestic market for electronic products
 Labor
♦ High literacy level of workforce
 Government
♦ Emphasis on competitiveness of Electronic City
♦ Infrastructure developed, increasing accessibility
1. Challenges faced by India
 Infrastructure
♦ World Bank report says that companies in India suffer power
failure every two days
♦ Traffic congestions are common  accidents, delays, late
workers
 Lack of raw materials
♦ Local supply of component parts is too small
♦ There is high cost of importing materials
 Lack of technology
♦ India has late start to opening to the global economy
♦ Electronic industry lagged behind other countries
 Competition from other NIE
♦ Intense competition from China
♦ China is most popular destination for foreign investment
1. Strategies
 Managing depleting resources
♦ Implementing policies and guidelines to regulate land use and
resources
 Appropriate use of resources
♦ To minimize potentially damaging human activities on
environment
 Recycling
♦ To recover useful materials from e-waste
♦ Separate hazardous and non-hazardous materials for further
processing