UPSC Exam > UPSC Questions > Which factor determines the attractiveness of...
Start Learning for Free
Which factor determines the attractiveness of an industry to labor centers?
- a)Proximity to coalfields
- b)Market size
- c)Availability of competent technology
- d)Labor cost compared to total cost of production
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Which factor determines the attractiveness of an industry to labor cen...
The attractiveness of an industry to labor centers is determined by the ratio of labor cost to the total cost of production. This is referred to as the "Labor cost of Index" by Weber. Industries that can benefit from a lower labor cost compared to their total production cost are more likely to attract labor centers. This factor affects the localization of industries and their distribution across different regions.
Free Test
FREE
| Start Free Test |
Community Answer
Which factor determines the attractiveness of an industry to labor cen...
Understanding Industry Attractiveness to Labor Centers
The attractiveness of an industry to labor centers is fundamentally influenced by the cost of labor relative to the total cost of production. Let's delve into why labor cost is crucial:
1. Impact on Profit Margins
- Labor is often one of the largest expenses in the production process.
- Lower labor costs can lead to higher profit margins for companies.
- Industries with competitive labor costs can attract more businesses seeking to minimize expenses.
2. Economic Viability
- Companies evaluate overall production costs, including materials, technology, and labor.
- If labor costs are too high, it could make an industry less viable, pushing businesses to relocate to regions with more favorable labor conditions.
3. Flexibility in Operations
- Industries with lower labor costs can afford to experiment with production techniques and technologies.
- This flexibility can foster innovation and make the industry more resilient to changes in market demand.
4. Competitive Advantage
- Regions that offer lower labor costs can provide a significant competitive advantage.
- This can attract not only local businesses but also multinational corporations looking to optimize their production processes.
5. Labor Market Dynamics
- A lower labor cost can attract a larger workforce, leading to a robust labor market.
- A diverse and skilled workforce can further enhance the attractiveness of the industry.
In summary, while proximity to resources, market size, and technology availability are important, the comparative cost of labor in relation to total production costs is a pivotal factor determining industry attractiveness to labor centers.
The attractiveness of an industry to labor centers is fundamentally influenced by the cost of labor relative to the total cost of production. Let's delve into why labor cost is crucial:
1. Impact on Profit Margins
- Labor is often one of the largest expenses in the production process.
- Lower labor costs can lead to higher profit margins for companies.
- Industries with competitive labor costs can attract more businesses seeking to minimize expenses.
2. Economic Viability
- Companies evaluate overall production costs, including materials, technology, and labor.
- If labor costs are too high, it could make an industry less viable, pushing businesses to relocate to regions with more favorable labor conditions.
3. Flexibility in Operations
- Industries with lower labor costs can afford to experiment with production techniques and technologies.
- This flexibility can foster innovation and make the industry more resilient to changes in market demand.
4. Competitive Advantage
- Regions that offer lower labor costs can provide a significant competitive advantage.
- This can attract not only local businesses but also multinational corporations looking to optimize their production processes.
5. Labor Market Dynamics
- A lower labor cost can attract a larger workforce, leading to a robust labor market.
- A diverse and skilled workforce can further enhance the attractiveness of the industry.
In summary, while proximity to resources, market size, and technology availability are important, the comparative cost of labor in relation to total production costs is a pivotal factor determining industry attractiveness to labor centers.
|
Explore Courses for UPSC exam
|
|
Top Courses for UPSCView all
Question Description
Which factor determines the attractiveness of an industry to labor centers?a)Proximity to coalfieldsb)Market sizec)Availability of competent technologyd)Labor cost compared to total cost of productionCorrect answer is option 'D'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which factor determines the attractiveness of an industry to labor centers?a)Proximity to coalfieldsb)Market sizec)Availability of competent technologyd)Labor cost compared to total cost of productionCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which factor determines the attractiveness of an industry to labor centers?a)Proximity to coalfieldsb)Market sizec)Availability of competent technologyd)Labor cost compared to total cost of productionCorrect answer is option 'D'. Can you explain this answer?.
Which factor determines the attractiveness of an industry to labor centers?a)Proximity to coalfieldsb)Market sizec)Availability of competent technologyd)Labor cost compared to total cost of productionCorrect answer is option 'D'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which factor determines the attractiveness of an industry to labor centers?a)Proximity to coalfieldsb)Market sizec)Availability of competent technologyd)Labor cost compared to total cost of productionCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which factor determines the attractiveness of an industry to labor centers?a)Proximity to coalfieldsb)Market sizec)Availability of competent technologyd)Labor cost compared to total cost of productionCorrect answer is option 'D'. Can you explain this answer?.
Solutions for Which factor determines the attractiveness of an industry to labor centers?a)Proximity to coalfieldsb)Market sizec)Availability of competent technologyd)Labor cost compared to total cost of productionCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of Which factor determines the attractiveness of an industry to labor centers?a)Proximity to coalfieldsb)Market sizec)Availability of competent technologyd)Labor cost compared to total cost of productionCorrect answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Which factor determines the attractiveness of an industry to labor centers?a)Proximity to coalfieldsb)Market sizec)Availability of competent technologyd)Labor cost compared to total cost of productionCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for Which factor determines the attractiveness of an industry to labor centers?a)Proximity to coalfieldsb)Market sizec)Availability of competent technologyd)Labor cost compared to total cost of productionCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of Which factor determines the attractiveness of an industry to labor centers?a)Proximity to coalfieldsb)Market sizec)Availability of competent technologyd)Labor cost compared to total cost of productionCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Which factor determines the attractiveness of an industry to labor centers?a)Proximity to coalfieldsb)Market sizec)Availability of competent technologyd)Labor cost compared to total cost of productionCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice UPSC tests.
|
|
Explore Courses for UPSC exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup