The location of industries worldwide is not determined randomly, but rather strategically chosen to maximize profits. Weber has proposed methods for determining the best locations for various industries. Additionally, certain factors can help entrepreneurs identify the most suitable location for their businesses.
Factors influencing the location of global industries
Proximity to consumer markets: The population size and income levels of a region play a critical role in determining the attractiveness of a market. Countries with large markets, such as India, attract numerous global industries.
Availability of cheap and skilled labor: Industries are drawn to areas with low labor costs. Currently, countries like Vietnam and Bangladesh are attractive locations for many industries due to their affordable labor force.
Labor laws: The regulatory environment regarding labor rights and working conditions can also influence the choice of an industrial location.
Access to raw materials: Some industries prefer to locate near raw material sources to save on transportation costs. For example, industries in Bokaro, Rourkela, and Bhilai in India are favorably located near raw material sources. These industries are primarily involved in mineral processing and include cement, brick, smelting, iron, steel, jute, food processing, and textile industries.
Historical factors: The manufacturing patterns in developed countries are heavily influenced by their history. Historical factors can affect industries in several ways:
Inertia factor: The industry may continue to operate in a particular location due to historical reasons.
Subsidiary industries: New industries may use by-products of primary industries or provide essential requirements for them.
Evolution of industries: An old industry may gradually transform and take on new forms, such as Oxford Motors and Rolls Royce.
Decline of industries: The decline of an industry can create a pool of unemployed labor and underutilized assets, such as factory buildings, railway facilities, and transportation networks.
Availability of cheap energy: Industries are attracted to regions with access to affordable electricity and other energy sources.
Access to affordable and efficient transportation: Industries located along coastal areas and riversides can save on transportation costs.
Agglomeration areas: These areas offer lower production costs due to favorable conditions such as low transportation costs, supportive government policies, skilled labor availability, and well-developed infrastructure. An example of an agglomeration area is Silicon Valley in the USA.
Geographical conditions: Factors such as precipitation, water availability, and climatic conditions can influence the location of industries. For instance, sugar and textile industries prefer humid climate regions.
Capital availability: Establishing an industry requires significant capital investment, making countries with capitalist governments attractive destinations for industries.
Technology: The ability to transform resources into valuable assets relies on the availability of advanced technology.
Vulnerability to natural resources: The susceptibility of a region to natural disasters can also affect the choice of an industrial location.
Government policies, regulations, and tax incentives: Favorable government policies and tax incentives can make a region more attractive for industrial investment.
Investment climate: The overall investment environment in a region, including factors such as political stability and economic growth, can influence business decisions regarding industrial locations.
Influence of pressure groups: The presence and influence of various interest groups can also impact the decision-making process for industry location.
Classification of Industries
Primary Industry: This is the most basic form of industry, involving the initial processing of raw materials to produce industrial raw materials. For example, the smelting of bauxite to create aluminum is part of the primary industry.
Secondary Industry: This category encompasses industries that reprocess partially manufactured goods to create more complex products. Examples include turning cloth into clothing or transforming paper into books. Secondary industries can be further classified as heavy industries, such as engineering, metal goods, heavy chemicals, shipbuilding, and locomotives, or light industries.
Tertiary Industry: This sector comprises service industries, including trade, transportation, commerce, entertainment, personal services, tourism, and administration, among others.
Quaternary Industry: This sector focuses on research, science, and technology, as well as other high-level tasks. Professionals in this industry include scientists, doctors, and lawyers.
Quinary Sector: Some consider this to be an extension of the quaternary sector, involving the highest levels of decision-making within a society or economy. The quinary sector includes top executives and officials in fields such as government, science, universities, nonprofits, healthcare, culture, and media, often serving in a consultancy capacity.
Question for World Industries: Location Patterns & Problems - 1
Try yourself:Which factors are crucial in determining the location of industries worldwide?
Explanation
The location of industries worldwide is determined by various factors, such as proximity to consumer markets, availability of cheap and skilled labor, historical factors, access to raw materials, cheap energy, and efficient transportation, among others. These factors help entrepreneurs identify the most suitable location for their businesses and maximize profits.
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Major Industries
Basic Industries: These industries produce raw materials for other sectors, such as the iron and steel industry. Their products are essential for manufacturing machinery, which is then used to produce various other products. The major steel producers are the Commonwealth of Independent States (CIS), the United States, Japan, and China.
Consumer Goods Industries: These industries manufacture products for direct consumption, such as edible oil, tea, coffee, bread, biscuits, and electronic devices like radios and televisions.
Metallic Industries: These industries are crucial for the development of modern industries and can be divided into two categories: ferrous and non-ferrous. Non-ferrous industries produce metals like copper and aluminum, which do not contain iron. Ferrous industries, on the other hand, use metals that contain iron, such as the iron and steel industry, machine and tool production, motor vehicles, railways, engines, and agricultural tools.
Shipbuilding Industry: This industry is primarily located in regions with a strong iron and steel industry presence. Japan is currently the global leader in shipbuilding.
Automobile Industry: This industry is best situated in established industrial areas with a history of manufacturing components. Major car producers include General Motors, Ford, and Chrysler in the United States, British Leyland in the United Kingdom, Volkswagen and Mercedes in Germany, Fiat in Italy, and Datsun, Toyota, and Mazda in Japan. The major car-producing countries include the United States, Japan, Germany, France, and other European nations.
Railway Equipment and Airplanes: This industry is typically located near heavy engineering districts or steel rolling mills, or at specific points within a national railway system. The United States is the world's largest producer of locomotives, with the industry centered in Detroit, Chicago, and New York. Additionally, the United States is the largest producer of airplanes, with Seattle being the primary hub.
Chemical Industries: Chemicals are widely used in various sectors, such as agriculture, metals, textiles, leather, paper, glass, ceramics, soap, and food processing. The chemical industry plays a vital role in the development of modern industries. Petrochemical industries, which use petroleum as a raw material, produce chemical fertilizers, paints, plastics, and some medicines. The main petrochemical manufacturing countries are the United States, Spain, Britain, and the CIS.
Textile Industry: Modern, mechanized textile manufacturing was first developed in Britain. Textile production using materials like wool, cotton, silk, or linen has been practiced worldwide, depending on the climate. The textile industry's location is mainly influenced by power and labor supplies, with cheap labor being an essential factor in establishing textile industries in the Southern United States and Japan.
Agro-based Industries: These industries use agricultural products as raw materials, such as jute, tea, sugar, cotton, and vegetable oil. Additionally, modern food processing industries fall under this category.
Forest-based Industries: Industries that rely on raw materials obtained from forests, such as paper and pulp, rayon, turpentine oil, and furniture, are known as forest-based industries.
Major Industrial Regions of the World
Moscow-Tula region of Russia: Located south of Moscow, this area is known for its iron ore, clay, limestone, and lignite deposits. It is a significant industrial center with metalworking, engineering, coal mining, and chemical industries.
Magnitogorsk, Russia: Situated near the Ural Mountains, Magnitogorsk is an industrial city with large iron ore reserves. The city played a crucial role during World War II as it supplied steel for the Soviet war machine and was strategically located far from the German Army's reach.
Donbas, Ukraine (Donets Basin): This eastern Ukrainian region has been a coal mining area since the 19th century. It is heavily industrialized, suffering from urban decay and pollution. The coal mines in Donbas are among the most dangerous in the world due to their depth and high levels of methane explosion, coal dust explosion, and rockburst risks.
Kuzbass region, Russia: Located in southwestern Siberia, this region is home to some of the world's largest coal deposits. It features a strong industrial presence, including metallurgy, mining, mechanical engineering, and chemical production.
Great Lakes region, North America: Comprising eight U.S. states and the Canadian province of Ontario, the Great Lakes region has navigable terrain, waterways, and ports that have led to significant transport infrastructure development. It is a global leader in advanced manufacturing, research, and development.
Appalachian region, United States: This region spans from southern New York to northern Mississippi and was historically reliant on mining, forestry, agriculture, chemical industries, and heavy industry. Its economy has diversified in recent times, including various manufacturing and service industries.
New England, United States: Located in the northeastern United States, this region has been an important center for industrial manufacturing and natural resource production. Its exports primarily consist of industrial products such as specialized machinery, weaponry, computers, and electronic equipment.
Yokohama, Japan: As the second-largest city in Japan, Yokohama is a significant commercial hub and has a robust economy focusing on shipping, biotechnology, and the semiconductor industry.
Manchurian region, China: This area is an industrial hub with vast coal mines, iron and steelworks, aluminum-reduction plants, paper mills, and factories producing heavy machinery, tractors, locomotives, aircraft, and chemicals. It is a major manufacturing and agricultural center in China.
São Paulo, Brazil: As the largest city in Brazil and its financial capital, São Paulo has transitioned from an industrial character to a service and business-oriented economy.
Lorraine, France: Located in northeastern France, this region is known for its iron and steel industry and crystal works, as well as its rich farming lands.
Ruhr and Silesia, Germany: The Ruhr valley is a densely populated region in Germany known for its coal mining and steel industries.
West Coast region, Canada: This area is one of the world's largest net exporters of energy and agricultural commodities, boasting significant reserves and production of oil, uranium, potash, wheat, coarse grains, and oilseeds.
Industrial Region: United States of America
The New England Regions
The New York-Mid-Atlantic Region
Mid-Western Region
North-Eastern Region
The Southern Region
Western Region
The Pacific Region
Industrial Region: Canada
Ontario and St. Lawrence Valley
Prairie Region
Pacific Coastal Region
Industrial Region: United Kingdom
Midland
Lower Scotland
North-East Coast
South Wales
Lancashire
London Basin
Industrial Region: Germany
Rhine Industrial Region.
The Saar and Middle Rhine Industrial Region.
The Hamburg Industrial Region.
Berlin Industrial Region.
Leipzig Industrial Region.
Industrial Region: France
The Northern Industrial Region
The Lorraine Industrial Region
The Paris Industrial Region
Industrial Region: Italy
The Northern Region (Lombardy, Piedmont, Liguria, etc.)
The Southern Region (Naples)
Other European Regions
Swiss Plateau in Switzerland,
Stockholm region in Sweden,
Rotterdam-Amsterdam region in Holland,
Brussels-Antwerp industrial region in Belgium.
Industrial Region: CIS
The CIS is one of the mighty industrial powers of the world.
The Moscow-Tula Industrial Region.
The Southern Industrial Region.
The Caucasus Industrial Region.
The Ural Industrial Region.
The Volga Industrial Region.
The Kuznetsk Industrial Region.
The Central Asia Industrial Region.
Asian Regions: Japan
The Tokyo-Yokohama Region.
The Osaka-Kobe Region.
The Chukyo Region.
The North Kyushu Region.
Asian Regions: China
The Manchuria Region.
The Yantze Valley Region.
The North China Region.
The South China Region.
Other Regions (Canton, Swatow, and Minhow).
Asian Regions: India
The Calcutta Conurbation.
The Bombay-Poona Megalopolis.
The Ahmedabad-Vadodara Region.
The Southern Industrial Region.
The Damodar Valley Region.
The Capital Regions.
Other Regions (Kanpur, Lucknow, Meerut, Allahabad, Varanasi, Jalandhar, Patiala, Jaipur, Bilaspur, Cuttack, Bhubaneswar, Hyderabad, Trivandrum, Alleppey, Quilon, etc.)
Question for World Industries: Location Patterns & Problems - 1
Try yourself:What are the five sectors of industries, and which sector focuses on research, science, and technology?
Explanation
The five sectors of industries are Primary (involving the initial processing of raw materials), Secondary (reprocessing partially manufactured goods), Tertiary (service industries), Quaternary (research, science, and technology), and Quinary (highest levels of decision-making). The Quaternary sector is the one that focuses on research, science, and technology.
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Other Asian Industrial Zones
Besides these major industrial regions, there are some isolated and scattered industrial centres in Asia.
Among these notable are Seoul, Chongtu, Taejon, Taegu, Pohang, Ulsal, and Kwangju in South Korea, small islands like Hong Kong and Singapore are important.
Of the smaller centres Karachi in Pakistan, Kuala Lumpur in Malaysia, and Kuwait are important.
Conclusion
In conclusion, the location of industries worldwide is strategically chosen based on factors such as proximity to consumer markets, availability of cheap and skilled labor, access to raw materials, and favorable government policies, among others. Industries can be classified into primary, secondary, tertiary, quaternary, and quinary sectors, each playing a crucial role in the global economy. Major industrial regions around the world, such as Moscow-Tula in Russia, Great Lakes in North America, and São Paulo in Brazil, have developed due to their geographical advantages, resource availability, and historical factors. Understanding these factors and industry classifications can help entrepreneurs and governments make informed decisions about where to establish and grow their businesses.
Frequently Asked Questions (FAQs) of World Industries: Location Patterns & Problems
What are the main factors influencing the location of industries worldwide?
Some of the main factors include proximity to consumer markets, availability of cheap and skilled labor, labor laws, access to raw materials, historical factors, availability of cheap energy, access to affordable and efficient transportation, agglomeration areas, geographical conditions, capital availability, technology, vulnerability to natural resources, government policies, regulations, and tax incentives, investment climate, and the influence of pressure groups.
How are industries classified?
Industries can be classified into primary, secondary, tertiary, quaternary, and quinary sectors, depending on their level of processing, their focus on raw materials or services, and their role in the economy.
What are some examples of major industries worldwide?
Major industries include basic industries, consumer goods industries, metallic industries, shipbuilding industry, automobile industry, railway equipment and airplanes, chemical industries, textile industry, agro-based industries, and forest-based industries.
What are some examples of major industrial regions in the world?
Some major industrial regions include the Moscow-Tula region of Russia, Magnitogorsk in Russia, Donbas in Ukraine, the Kuzbass region in Russia, the Great Lakes region in North America, the Appalachian region in the United States, New England in the United States, Yokohama in Japan, the Manchurian region in China, São Paulo in Brazil, Lorraine in France, Ruhr and Silesia in Germany, and the West Coast region in Canada.
How do historical factors influence the location of industries?
Historical factors can affect industries in several ways, such as the inertia factor (industries continuing to operate in a particular location due to historical reasons), the growth of subsidiary industries (new industries using by-products of primary industries or providing essential requirements for them), the evolution of industries (old industries gradually transforming and taking on new forms), and the decline of industries (creating a pool of unemployed labor and underutilized assets).
The document World Industries: Location Patterns & Problems - 1 | Geography Optional for UPSC (Notes) is a part of the UPSC Course Geography Optional for UPSC (Notes).