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The Location of Industry

Factors Influencing the Location of Industry 
There are various factors which may influence a firm’s choice of location. 
  • Availability of land 
  • Access to raw materials, power and water 
  • Availability of labour 
  • The locations of the main markets 
  • Transport facilities 
  • Regional specialization External Economies of scale 
  • Government policy and assistance 
Regional Policy 

Aims of Regional Policy 
Government’s regional policies are aimed at the following. 
To reduce regional differences in unemployment 
To minimize the harmful effects of over-dependency on one industry 
To minimize social costs such as congestion and pollution 
To restrict the growth of the great conurbations 

Regional Unemployment 
Government needs to cure the problem of regional unemployment. It can use the following strategies. 

1. Taking Workers to the Work 
Promoting geographical mobility of labour will help the unemployed section to become employed. 

2. Taking Work to the Workers 
Encouraging firms to set up and invest in areas of mass unemployment will help the unemployed section to become employed. 

Assisted Areas 
These are areas which suffer from severe unemployment problems resulting from the decline of local firms and industries. Government gives financial and other assistance under the Regional Policy in order to promote industrial regeneration.

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