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Geography Industry

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
1. Transportation
• Transportation is the movement of people and goods from here to
• Transport is used to move raw materials and products
• Industries prefer to set up at places with a cost-effective transport
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-

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

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
 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
 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
 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
 Appropriate use of resources
♦ To minimize potentially damaging human activities on
 Recycling
♦ To recover useful materials from e-waste
♦ Separate hazardous and non-hazardous materials for further