Report a Violation, Factors Affecting the Location of an Industrial Unit: (i) Primary and (ii) Secondary, Plant Location: 11 Factors that Influence the Selection of Plant Location, Production Planning: it’s Meaning and Objectives. It is easier and cheaper to produce a film in Bombay than in any other part of the country. Skilled labour is available only at specific centres. The various factors are divided into two categories viz., […] Certain merchants belonging to Ahmedabad have made that place a leading textile centre of India. Labour implies both the skilled and unskilled workers needed for different types of activities. For example, a publishing house publishing Punjabi books cannot be located in Calcutta or Bombay. Locally available resources - One also needs to find out what the locally available resources are. Proper and right choice of location is instrumental in future success of the business. Market greatly affects the establishment of an industrial unit and is in fact, dominant factor in locating an industrial unit in modern times. STUDY. Areas which are frequently subjected to earthquakes and other natural calamities may not attract many industries. Disclaimer 9. That is why industries have developed largely in plains rather than in hilly areas. Labour Supplies: For the successful and un-interrupted working of a factory, availability of adequate … On the other hand workers from tropical regions are not generally so efficient. Industries requiring highly skilled labour have to select such sites which ensure adequate and regular supply of required labour. Every industry requires fuel for working the machinery and unless the region has rich fuel resources of power now available are coal, hydro-electricity and oil etc. Log in Sign up. Not only men, but women and children have also engaged themselves in this industry directly or indirectly. Privacy Policy 8. Another important point in this regard is that means of transportation and communication are more in plains rather than in hilly areas. But both these methods are time consuming and involve a lot of expenditure which ultimately increase the cost of production. Besides transportation, communication services are also used to be of immense importance in deciding the location of an industrial unit. The views to the site as well as the views from the site are to be carefully considered while designing. 15 terms. Soil and climatic conditions are very important for the establishment of various type of industries like tea, coffee, rubber and tobacco. Carpet industry developed gradually at Mirjapur district of Uttar Pradesh. (iii) Jute works in Bengal owe their success on account of easy availability of raw-materials. (ii) Textile factories in Gujarat and Maharashtra. Industry using third type of raw material can be located anywhere. Certain cash incentives and concessions are also given by Govt, in order to promote a particular industry in a particular region. In case there arises the necessity of calling fire brigades, proper preparations must be made for the same. Industries using pure raw material (which do not lose their weight when turned into finished products) may be situated away from the source of such raw materials. electricity, gas, oil and water power etc. Similarly topography (e.g., hilly or rocky surface) of a place also influences location of an industry. Sugar factories in Uttar Pradesh, Textile units in Maharashtra and Gujarat, Cement factories in Madhya Pradesh and Jute industry in West-Bengal. Banks, stock exchanges and other similar institutions help in capital formation and expansion of industry by providing financial help to it from time to time. The basic aim of selecting a particular mode of transportation should be minimum transportation cost with maximum transportation service. Our mission is to provide an online platform to help students to discuss anything and everything about Economics. In order to maintain uninterrupted production, facilities with regard to repairs of machinery, plant and other components (in case of breakdown), must be kept in mind before setting a factory. In modern times different modes of transportation and their increased efficiency and flexibility have provided ample choice to the industrialists in the matter of location. Question: Which factor is not considered when determining a form of business organization? In order to develop industries on sound lines, Govt, has declared certain areas as industrially backward or special economic zones. Criteria and factors affect site selection for industrial building Environmental consideration is playing the significant role in industrial building construction. The correct answer is d) The number of buyers.. Similarly sugar factories are located very near the sources of raw materials. These days the government plays an important role in determining the location of new industries. Sometimes personal likes had dislikes also influence location of a particular industrial unit. Constant research and experimentation is undertaken to develop products and improved methods of production. TOS 7. Copyright 10. The behaviour of the existing buildings or structures neighbourhood may guide in deciding the type and the depth of … Climate of a place also considerably affects the efficiency of workers. Nearness to banks and other financial institutions is an important consideration now-a- days in deciding location of an industrial unit. Proper and right choice of location is instrumental in future success of the business. Prohibited Content 3. On account of mobility of labour, this factor does not materially affect the location of an industrial unit. On the other hand, disturbed political and economic set up discourages the growth of industries in the region. There are various reasons responsible for such a concentration of industries in a particular region viz., (i) availability of required type of labour in a particular region, (ii) facilities of repairs and maintenance on account of many repair shops and workshops operating in the areas, (iii) Availability of transport, communication, banking and insurance facilities, (iv) Facilities of managerial consultations and advice are also available. Create. Climate also affects the efficiency of labour. If however, the entrepreneur acts rationally and his necessary knowledge he will choose the location which offers the lowest cost per unit of output. Log in Sign up. Nearness of the market ensures transportation costless and minimum wastage. Availability of cheap power and fuel supply sources is another decisive factor in selecting proper location of an industrial unit. Certain concession and subsidies like cheap land, power and tax concession and subsidised raw materials etc., are provided in order to develop that particular area. For the successful and un-interrupted working of a factory, availability of adequate supply of labour of the right type at reasonable wages is also very essential. Similarly, at Ludhiana a few hosiery units started in the beginning, now Ludhiana has become a very big hosiery articles producing centre in India. A simple repositioning of functionalities to give added attention – like moving the Shopping Cart to a more visible location – can already improve the user-friendliness of your site over your direct completion. Its ideal location would be Jalandhar, which is a leading publishing centre in Punjab. (c) raw materials which are not heavy and can be preserved for a longer period of time, e.g., raw cotton. Factors affecting location of an industrial unit are: (I) Primary factors and (ii) Secondary factors: Decision with regard to location of an industrial unit involves a careful study of many factors. Besides the above primary factors, there are some other factors which have bearing on the location of industries. This is another important factor affecting industrial location. Privacy Policy3. For example—The development of the dying and printing industry in Farukhabad and the glass industry in Ferozabad d have been mainly located there due to the availability of skilled labour in these towns. Following factors can be explained under this category: For the efficient and smooth running of the business and for meeting working capital requirements, banking facilities play an important role. Nearness to the source of raw material is very economical for an industrial unit. On account of development of internet, mobile phones etc., this factor does not affect the location of plant now a days. egear7. Unrestricted and regular supply of raw material is very necessary for carrying out unrestricted production. Business Organizations: There are various types of business organizations that can exist in a country. A large scale concern can afford to install its own repair workshops, whereas small concerns may rely on various repair shops working near the factory. For example—Cotton textile industry requires humid climate while the photographic goods industry flourishes best in regions of dry climate. ADVERTISEMENTS: Factors affecting location of an industrial unit are: (I) Primary factors and (ii) Secondary factors: Decision with regard to location of an industrial unit involves a careful study of many factors.
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