Factors
Human factors
click to edit
Capital
example: a farmer would buy cheap land to farm.
example: A clothing store such as NIKE would have factories in countries with low capital such as Vietnam
Power supply
The cheaper the electricity it will attract more industries
example: a company making light bulbs would need electricity to check if light bulbs work and for machinery and for air conditioning. All these costs can be significantly reduced if cheap electricity is used.
Labour
large vast amounts of labour work is needed for cheap and with skill.
this alters the location
Example: Again NIKE have wisely chosen Vietnam for being able to pay cheap wages for very highly skilled workers
The cheaper the capital the more it will attract industries.
Government policies
Government could be discouraging of businesses and therefore making it harder to exsist
Example: transport of drugs is a hard insustry as it is discouraged by the U.S. Government
Some governments encourage the construction of industries
This done by providing grants, support and money.
Example: In australia The government provides money for industries to take care of the elderly
Physical factors
Climate
Availability of raw materials
Are sufficient raw materials available
if a source or ore is close, then a industry might thrive there.
Example: Al-Ezz steel is an Egyptian steel industry which is located near a iron and steel ore.
better climate indicate for more industries to thrive.