POL371H1 Final: Exam Notes
Document Summary
2 factors, labour and capital, and goods are mobile. Institutions in spatial perspective for new industries, common practices may develop unofficially first before those standards are taken to become rigid rules. gives advantage to the firms that are in the centre of developing these processes. Week 3: classical view of industrial location and policy. Weber (1909) viewed industrial location decisions as optimization processes. Finding the spot "p" where the materials are transported to be made into a product. The products or materials you do not need do not have to be transported to the market => saving the cost of transportation. If you have an access to the localized materials, it even more lowers the cost of transportation. The spot where the transportation costs are most minimized is where the consumption point relies. K: final product and consumption point => optimum point. One single-plant firm looks for an optimal location. Two raw materials are used to produce one product.
