GEOG 1HA3 Lecture Notes - Lecture 16: Weight Gain, Location Theory
16 Jan 2017
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Located near key inputs: coal and iron ore are heavy/bulky to transport. Locate near key markets: steel is heavy/bulky to transport. Today: principles of location theory-weber"s least cost industrial location theory. Spatial organization of production: the tyranny of distance". Location tends to be material oriented either material oriented or market oriented: these are two extremes, but typically there is balance. Observe: locate a plant so as to maximize profits by minimizing transport costs: find a location (p:processing plant) along a line between s: source of raw materials and m: market for finished products. Today model must be modified to account for other factors of production such as. Footloose industries and tnc"s: no loyalties to locations. Why do manufacturing plants locate in particular places: one vs. Weight gain in production of materials: bottling. Intermediate goods: multiple stages of processing, are still the raw materials to a finished product. Terminal costs are distributes over the length of haul.
