What are some of the factors that would influence a firm to locate close to its market?
What will be an ideal response?
Answer: For many firms, the optimal location is close to markets, where the product is sold. The cost of transporting goods to consumers is a critical location factor for three types of industries. These are bulk-gaining industries, single market manufacturers, and perishable goods.
Bulk-gaining industries make something that gains volume or weight during production. A prominent example is beverage bottling. Empty cans and bottles are brought to the bottler, filled with the soft drink or beer, and shipped to consumers. The principal input placed in the beverage container is water, which is relatively bulky, heavy, and expensive to transport.
Single-market manufacturers' products are sold primarily in one location, so they also cluster near their markets. For example, the makers of parts for motor vehicles are specialized manufacturers often with only one or two customers, the major carmakers such as GM and Toyota.
Perishable products must be located near their markets so their products can reach consumers as rapidly as possible.
You might also like to view...
Low-grade ore deposits are those that are not economically exploitable. Indicate whether the statement is true or false
Weather forecasts can be inacurate due to: a. failure to capture small-scale weather features
b. the limited geographical boundaries of computer models. c. inherent flaws in computer models. d. All of these choices.
Which of the following is NOT a factor in the climate of a region:
a. latitude b. proximity to a major river c. proximity to an ocean d. elevation
Turbidity currents produce some ________.
A. submarine canyons B. trenches C. abyssal hills D. All of these are correct. E. None of these is correct.