1 / 15

Weber ’ s model on industrial location

Weber ’ s model on industrial location. Natural resources Markets Labour Transport costs. Unevenly distributed (ubiquitous/localized) Fixed On a plain Fixed Immobile unlimited supply At given wage rate Weight + distance of transport. Explicit assumptions. Implicit assumptions.

dalrymple
Download Presentation

Weber ’ s model on industrial location

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Weber’s model on industrial location

  2. Natural resources Markets Labour Transport costs Unevenly distributed (ubiquitous/localized) Fixed On a plain Fixed Immobile unlimited supply At given wage rate Weight + distance of transport Explicit assumptions

  3. Implicit assumptions • Uniform surface • Fixed capital • Perfect competition • Economic men

  4. Cost factors affecting industrial locations • Transport costs • Labour costs • Cost of proximity (agglomeration/deglomeration)

  5. Varignon frame

  6. Material Index total weight of localized raw materials used =--------------------------------- weight of finished products

  7. Line graphs

  8. Location triangle

  9. Isodapane

  10. Labour factor

  11. Labour factor • the LTCL may not coincide with the cheapest labour site • especially significant for attractive labour-intensive industries • If the saving in labour cost is greater than the increase in transport cost, he will move to the cheap labour cost site

  12. Labour factor • Critical isodapane = transport cost at LTCL + labour cost savings at source of cheap labour • If the source of cheap labour is inside the critical isodapane, the location is a profitable one (and vice versa).

  13. Critical isodapane

  14. Agglomeration factor

  15. Further exercise

More Related