ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -According to Weber transportation costs play a vital role in the location of an industry. Each industry will try to find location at a place where transportation charges are the barest minimum, both in terms of availability of resources and place of consumption.

Detailed explanation-2: -According to Weber, three main factors influence industrial location; transport costs, labor costs, and agglomeration economies. Location thus implies an optimal consideration of these factors.

Detailed explanation-3: -We begin by discussing three classical and neoclassical models of industrial location behaviour, namely the Weber model, the Moses model, and the Hotelling model. Each of these models provides us with different insights into the fundamental reasons for, and the consequences of, industrial location behaviour.

Detailed explanation-4: -According to weber’s industrial location theory, if the raw materials are weight-losing or impure then the industries should be shifted towards the region of raw material. For instance, Sugar industry, Steel industry, Jute industry etc.

Detailed explanation-5: -His theory emphasized the “pull factors” of geographic location that attract particular industries. According to Weber, industries will be located where there is a reduction in the cost of production due to the transportation cost, labor cost, and agglomeration economies.