ECONOMICS
ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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paper production
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processing which makes the final product lighter than raw materials
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processing of raw materials into heavier finished products
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environmentally friendly production
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Detailed explanation-1: -Weber’s Least Cost Theory attempts to describe and predict the location of manufacturing industries based on three factors: transportation costs, labor cost, and the benefit of agglomeration (clustering with similar, interdependent businesses).
Detailed explanation-2: -According to Alfred Weber’s theory of industrial location, three factors determine the location of a manufacturing plant: the location of raw materials, the location of the market, and transportation costs.
Detailed explanation-3: -According to Weber, three main factors influence industrial location; transport costs, labor costs, and agglomeration economies.
Detailed explanation-4: -Cheap Labor is the most important because the higher labor cost are the lower a companies profit. Considered the most expensive factor for LCT. In some cases an industry may perform better farther away from the market and raw materials, due to the availability of cheap labor.