Review of IndustryLabor vs. Capital

Heavy vs. light

Labour vs Capital Intensive

VS.

Heavy vs. Light Industry

Section ReviewWhich type of industry requires a lot of

person hours to produce the product? Which type of industry requires a lot of

machinery to produce the product? Which type of industry produces a product

intended for the everyday consumer?Which type of industry Produces a product

that is used by other industry? Is the pop industry heavy or light industry?

Section ReviewWhich type of industry requires a lot of

person hours to produce the product? LABOR INTENSIVE

Which type of industry requires a lot of machinery to produce the product?

Which type of industry produces a product intended for the everyday consumer?

Which type of industry Produces a product that is used by other industry?

Is the pop industry heavy or light industry?

Section ReviewWhich type of industry requires a lot of person

hours to produce the product? LABOR INTENSIVE

Which type of industry requires a lot of machinery to produce the product? CAPITAL INTENSIVE

Which type of industry produces a product intended for the everyday consumer?

Which type of industry Produces a product that is used by other industry?

Is the pop industry heavy or light industry?

Section ReviewWhich type of industry requires a lot of person

hours to produce the product? LABOR INTENSIVE

Which type of industry requires a lot of machinery to produce the product? CAPITAL INTENSIVE

Which type of industry produces a product intended for the everyday consumer? LIGHT INDUSTRY

Which type of industry Produces a product that is used by other industry?

Is the pop industry heavy or light industry?

Section ReviewWhich type of industry requires a lot of person

hours to produce the product? LABOR INTENSIVE

Which type of industry requires a lot of machinery to produce the product? CAPITAL INTENSIVE

Which type of industry produces a product intended for the everyday consumer? LIGHT INDUSTRY

Which type of industry Produces a product that is used by other industry? HEAVY INDUSTRY

Is the pop industry heavy or light industry?

Section ReviewWhich type of industry requires a lot of person hours

to produce the product? LABOR INTENSIVE Which type of industry requires a lot of machinery to

produce the product? CAPITAL INTENSIVE Which type of industry produces a product intended

for the everyday consumer? LIGHT INDUSTRYWhich type of industry Produces a product that is

used by other industry? HEAVY INDUSTRY Is the pop industry heavy or light industry? LIGHT

World Geo 3200/3202April 2011

Outcomes5.3.1 Examine the influence that site conditions and

situation may have on the location of an industry. (a) 5.3.2 Compare the terms resource-oriented industry and

market-oriented industry. (k) 5.3.3 Analyze the influence of weight-gain and weight-

loss production on the location of an industry. (a) 5.3.4 Describe the advantages of the agglomerating

tendency. (k) 5.3.5 Identify the characteristics of a labour force that

make it attractive to industry. (k) 5.3.6 Explain how government subsidies on

transportation influence the location of a given industry. (k)

5.3.7 Draw conclusions about patterns in the distribution of highly industrialized areas on the earth’s surface. (a)

IntroductionThis section looks at the factors that

determine the location of industries.  For example Industries that rely on heavy

raw materials are located close to the raw resource & are referred to as resources oriented industries.

While the last section looked at ways of classifying industries this is yet another way industries can be classified.

Factors Affecting Location of IndustryA. Site/physical Factors

B. Human-based Cost Factors

C. Government Influence

A. Site/Physical Cost FactorsThree major factors of site (physical location)

Proximity to raw material. Heavier & bulkier the raw material the closer the industry will be located to reduce transportation costs.

Land: price, level, good drainages, dense well-settled soil

Energy: not as important a factor today due to our ability to transport power long distances.

Resource Oriented IndustryIndustries that are located close to the resource

because it is to heavy/bulky to transport

Communities frequently spring up around resource industries. 

Labrador City, Churchill Falls, Grand Falls-Windsor and Bonavista are good examples. 

Can you think of other examples?

B. Human-based Cost FactorsMarket Oriented Industry Market vs. Resource Oriented IndustriesAgglomerating Tendency Industrial Parks Labor force characteristics that attract

business

Market Oriented IndustryIndustries that are located close to the market

because the product is expensive to transport. The resources are not bulky or expensive to transport.  The Soft drink industry is a good example.

Market Oriented vs. Resource OrientedAs we examine the influence of “weight gain” &

“weight loss” on the location of industry we see that if the product weight is greater (weight gain) than the input resources it is located near market. 

Conversely if product weight is less (weight loss) than the input resources it is located near resource.

Agglomerating TendencyAgglomerating tendency refers to the

tendency for factories producing related products to locate close to each other for mutual benefit.

Ex. Car factory & tire factory. How does each benefit by being located close to each other?

Industrial Parks Industrial parks provide many advantages for a

business. 

Existing infrastructure of roads, on & off ramps to highways, large lots, sewer, ample electricity, & close location to related industries make industrial parks attractive for manufacturing businesses.

Donovan’s Business Park, Mt. Pearl, is a local example. It is the major truck terminal for the region & the province

Industrial Parks 

Labor Force Characteristics that Attract BusinessWages expected: lower wages in some

developing countries like Mexico, and the Philippines attract manufacturers

Training: highly skilled labourers can attract businesses that require welders, mechanics, carpenters etc.

Benefits (EI, Pensions etc):  lower costs of employment insurance, pensions , etc. can attract business just as easily as low wages.

Availability: a high unemployment rate might attract business, especially if large numbers of workers are required.

C.Government Influence1. Transportation subsidies affect the location

of industry. Subsidies allow businesses to locate farther from

the resource. Subsidies allow governments to encourage industry

in rural areas.Examples: ice breakers in Botwood; roads in Labrador; cost of coastal transportation in Labrador; cost of crossing the Gulf.

Government Influence2.Tax breaks affect the location of Industry.

Provinces like Newfoundland have attempted to attract business by offering tax breaks. 

The company obtains a financial break while the province gets the advantage of putting people to work.

Industry Location: The Global PictureLook at figure 13.6 on page 223 of your text

book.  The highly industrialized areas on the earth's

surface are concentrated in 4 definite regions: North America Western Europe Japan Australia

Do you see any other patterns?

5.3 ReviewWhich type of industry is located close to the

resource?  RESOURCE ORIENTED Which type of industry is located close to the

market ?  MARKET ORIENTED Are weight gain industries market oriented or

resource oriented?  MARKET ORIENTED Are weight loss industries market oriented or

resource oriented? RESOURCE ORIENTED

5.3 ReviewProximity to resource is one physical factor of

site that affects the location of industry.  What is another physical factor affecting location of manufacturing industry?  COST / FLATTNESS / GOOD DRAINAGE/ STABLE

What term is given to the phenomenon that related businesses tend to locate close to each other?  AGGLOMERATING TENDANCY

Name two ways government can influence the location of industry.  TRANSPORTATION SUBSIDIES & TAX BREAKS

5.3 ReviewWhat name is given to sites in a community

that are good for industry because of existing infrastructure of roads, on ramps and off ramps to highways, large lots, sewer, ample electricity, and close location to related industries.  INDUSTRIAL PARK

Name the four regions of the world that are highly industrialized with high wages.  NORTH AMERICA, WESTERN EUROPE, AUSTRALIA, JAPAN

Case StudyRead the case study "Human and physical

factors in Japan's Car Industry" on pages 227-228

Complete questions #18 & 19 on page 228 of your text book.