Industrial Location Factors & Global Development Tiers

Key Factors in Industrial Location

Physical and Environmental Factors

• Raw Materials: The factory needs to be close to these if they are heavy and bulky to transport.
• Energy Supply: This is needed to work the machines in a factory. Early industries were near to coalfields. Nowadays, electricity allows more freedom.
• Natural Routes: Some laws forbid the setting up of industries in places where they could destroy a valuable environment.
• Site and Land: Most industries require large areas of cheap, flat land on which to build their factories.

Human and Economic Factors

• Labour: A suitable labour force is essential. Cost and skill levels are important.
• Transport: A good transport network helps reduce costs and make the movement of materials easier.
• Capital: All industries require some money to set up and start manufacturing. This may be available from banks or local authorities.
• Markets: An accessible place to sell the goods is needed. This may be in the local area, within the country, or abroad.
• Government Policies: Industrial development is encouraged in some areas and restricted in others. Subsidies may be available in development areas.
• Environment (Workforce Attraction): Pleasant surroundings with good leisure activities help attract and retain a workforce.

Global Industrial Development Levels

Developed Countries (MEDCs)

They have a very modern industry, technologically advanced, and very diversified (with a lot of different industries). Examples include:

• USA: Industries include chemical, aeronautics, automobile, electronics, computing, etc.
• European Union: Industries include automobile, chemical, food, clothes, aerospace, etc.
• Japan: Industries include electronics, computing, etc.
• Others: Canada, Australia, etc.

Newly Industrialized Countries (NICs)

These countries have reached high levels of development in industry. This development has been based on the abundant labour force and on their competitive prices. The NICs are, mainly, in Eastern Asia.

• Key Locations: Singapore, South Korea, Malaysia, Indonesia, the Philippines, Thailand, and Taiwan.
• Common Industries: Automobile, electronics, etc.

Developing Countries

The industrialization process in these nations has often developed around the transformation of natural resources that are plentiful in some of these zones. In these countries, industry has great importance in the GDP. They are found in regions such as:

• Latin America: Brazil, Mexico, etc.
• Africa: Morocco, Algeria, etc.
• Asia: China, India, etc.

Underdeveloped Countries (LEDCs)

In LEDCs, industrial development started very late and is developing slowly or still hasn't started. They are the poorest countries in the world.

• Industries are mainly located in ports and cities in mineral and hydrocarbon exporting countries.
• The factories are often owned by foreign countries.
• These countries are predominantly situated in Africa, Asia, and Latin America.