DSE Geography Paper 1 C3 Changing Industrial Location Notes 2020-2021 PDF

DSE Geography Paper 1 C3 Changing industrial location 3.2 What are the factors affecting the location of the manufacturing HKDSE MCQ 2012 Q16, 2013 Q2, 2014 Q20, 2017 Q19, Q21, 2018 Q20, Q22, 2019 Q11, DBQ 2014 Q3b industry? There are many factors af...

DSE Geography Paper 1 C3 Changing industrial location 3.2 What are the factors affecting the location of the manufacturing HKDSE MCQ 2012 Q16, 2013 Q2, 2014 Q20, 2017 Q19, Q21, 2018 Q20, Q22, 2019 Q11, DBQ 2014 Q3b industry? There are many factors affecting industrial location. Manufactures often set up factories at a site where production cost is the lowest so that profit is the highest. Locational advantages / factors A. Physical factors Land Land for heavy industry should be large/ extensive, flat and cheap. E.g. iron and steel industry. Land cost are usually lower in the suburbs and in the LDCs Some heavy industries are concentrated along coastal areas for future plant expansion by land reclamation. Light industries demand small space. It can be operated in flatted factories/ multi-storey factory buildings, e.g. electronic industry Raw (i) Industries that need a lot of raw materials (iii) What are the reasons for the materials are called raw materials-oriented industries. attraction of raw materials for some ⚫ tend to locate near the source of raw industries to decrease? material ⚫ Improvement in transport and ⚫ to reduce transport / production costs reduction of transport cost, e.g. (ii) What is the nature of raw materials that bulk carrier, tanker make the industries locate close to raw ⚫ More efficient use of raw materials? materials Nature of raw materials Examples ⚫ Able to use of substitute High weight loss Sugar milling materials Heavy and bulky Paper making ⚫ Greater attractiveness of market Perishable Butter and cheese location Low value Brick making Power (i) Industries that need a lot of energy are called (iii) The locational pull of coalfields power-oriented industries, has decreased during the past ⚫ tend to locate near the source of power century. It is because of ⚫ to reduce transport / production costs ⚫ Improvement in transport ⚫ e.g. iron and steel industry, aluminum ⚫ Efficient use of coal industry ⚫ Development of new energy sources (ii) Coal was the main power source in the 19th ⚫ Burning of coal emits lots of century, Its locational pull was very strong pollutants because coal is heavy and bulky and the transport system was poor at that time. 2020-2021 3-1 DSE Geography Paper 1 C3 Changing industrial location B. Human / economic / Cultural factors 1. Government policies / Role of Government Measures by factories institutional Favourable factors Unfavourable factors to solve the problems (provide incentives) (impose restriction) factor 1 Improvement of power Restricting the extraction of Importing raw materials. supply raw materials and power and power from other locations 2 ‧ Labour cost subsidies ‧ Labour policies, e.g. ‧ Introducing. ‧ Providing labour minimum salary, mechanization training and education maximum working hours, and automation to mandatory provident reduce labour cost fund, pay leave, labour ‧ Better training to union labour and staff 3 ‧ Setting up ‧ Imposing tariffs and trade ‧ Establishing high. anti-monopoly law to barriers market reputation/ prohibit firms to brand building dominate the market ‧ Extending market ‧ Carrying out share international expositions to enlarge market exposure ‧ Widening the world market 4 Providing / improving Lack capital to improve Investment on. infrastructure transport and infrastructure infrastructural projects 5 ‧ Introducing updated ‧ Lack capital to ‧ Inviting the. equipment introducing updated government to ‧ Providing financial equipment invest on assistance for technology technological improvement 6 ‧ Financial subsidies ‧ High-tax, rate and ‧ Developing clean. and low-interest loan government fees technology ‧ Special tax ‧ Fining heavy polluting ‧ Moving to lower arrangement industries, i.e. higher cost locations environment cost 7 ‧ Providing cheap land ‧ Zoning policy: not ‧ Moving to other. for industrial use allowing industrial areas with lenient ‧ Low-interest loan development in certain rules and payable towards the areas regulations cost of land ‧ Requiring firms to obtain ‧ Effective ‧ Environmental prior approval for response to protection policies to projects in certain areas environmental improve the ‧ Tighter rule and concerns environment in regulations in certain including industrial areas areas, e.g. Environmental production and protection measures, land facilities use rules 8 Publicity and. image-building for the agglomerated area 2. Capital There are TWO types of capital, namely, 1. Financial capital (money) 2. Fixed capital (plants and machinery) Industries that need a large investment of capital are called Capital-intensive industry, e.g. car making In general, It is easier to obtain capital in the MDCs High-technology industrial are usually found in areas where venture capital is available. 2020-2021 3-2 DSE Geography Paper 1 C3 Changing industrial location 3. Labour Amount of labour Labour-intensive industries (e.g. clothing industry) tend to locate near source of cheap and abundant labour supply, e.g., in big cities in the less developed countries. Skill/ quality of labour Garment industry requires a lot of skilled labour Information technology industry requires professionals and tends to locate near university. Presence of labour union, the number of strikes Labour costs include Wages, Medical plans, Pension schemes, Paid holidays, etc. Labour costs are also affected by the power of labour unions. In cities where labour unions are strong, they bargain for higher wages and better benefits. This means higher labour costs. 4. Market (i) There are 2 types of market. They are local and overseas markets. (ii) If the cost of moving the product to its market forms a high percentage of the total cost, it will tend to be market-oriented. Big cities with a large population and many firms usually form good markets. (iii) What is the nature of products that market-oriented industries have? Nature of products Examples High weight gain Soft drink Fragile and easily damaged during transport Glassware Perishable Bread and cakes Easily outdated Publication (e.g. newspaper) (iv) What are the reasons for increasing attractiveness of a market location? ⚫ Higher transport cost for finished goods ⚫ Large cities have good infrastructure ⚫ Improvement in transport and reduction of transport cost of raw materials, e.g. bulk carrier, tanker 5. (i) Industrial agglomeration means that many industries locate close to each other Industrial and form a cluster. agglomeration (ii) What are the advantages of industrial agglomeration? − Reduce inter-factory transport costs − Enjoy a better flow of information − Increase the supply of labour − Share sources of innovation and common markets − Availability of supporting services and well-developed infrastructure − Lower production costs 6. Transport (i) In general, transport cost increases with increasing distance and (ii) In general, transport cost increases with increasing weight of freight. telecommuni (iii) Perishable, fragile or high-valued goods (e.g. flower) tend to use air -cations transport because it is fast but expensive (iv) Sea transport is the cheapest for bulk transport very long distance (v) Rail transport is the cheapest for medium distance (vi) Road transport is flexible in routes on land. (vii) An efficient transport network can deliver products at a low cost. What are the good sites for industries in terms of transport facilities? 2020-2021 3-3 DSE Geography Paper 1 C3 Changing industrial location - Places with high accessibility are good sites for industrial locations. - e.g. airports, ports, rail terminals - This enables efficient import of raw materials and export of products. - Telecommunications enables an efficient exchange of information between the factories, branch offices, business partners and headquarters 7. Technology How do technological advancements affect the attractiveness of other location factors? Power With technological advancements, less coal is needed for generating power in the production processes. Electricity transmission technologies have been improved. Electricity can be transmitted by cables over a long distance ➔ the importance of power as a location factor has been decreased Raw With technological advancements, fewer raw materials are materials needed. Substitutes can be used (e.g. scrap iron replace pig iron in iron and steel industry) The transport cost of moving the raw materials from the sources to factories can be lowered. ➔ the attractiveness of the source of raw material is decreasing Transport Large cargo ship / bulk carriers can be used to transport bulky and heavy raw material. Transport cost can be decreased. Refrigerated ships are able to carry perishable products Labour Factories can adopt automation (e.g. using robot and machines in the production processes). ➔ this reduce the demand for labour Site Mechanization allows mass production to enjoy economies of factor scale, thus large space is needed. The attractiveness of large cities is increasing because the flow of information and technology is faster. 8. Behavioural Decision-making process is influenced by the entrepreneur’s own experience, factors education background, the information he receives, personal ability of analysis 9. Historical (i) Sometimes industries remain in an existing location after the original factors favourable factors have weakened. This is called industrial inertia. (ii) Reasons: Refer to Unit 3 HKDSE MCQ 2013 Q20, 2017 Q21, 2019 Q11 Footloose Industry ⚫ The industry that is not strongly pulled by any locational factors and can locate anywhere with similar cost advantages ⚫ Its raw materials and finished products are not heavy and bulky → they are not costly to transport ⚫ They do not consume much fuel → not tied to the source of power ⚫ Footloose industries are often attracted to: ◼ areas of industrial agglomeration which offer advantages of economies of scale ◼ accessible sites that can obtain raw material from over the world and export to overseas ◼ industrial estates with the necessary infrastructure planned by the government ◼ special economic zones that the industry can enjoy government incentives 2020-2021 3-4