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The term industry covers a multitude of meanings; in its narrowest sense, it may only refer to manufacturing- the making of goods. This conjures up visions of factories and mills and it is in consequence rather limited in scope. In its broadest sense, it is refers to all stages and types of economic activity including extraction, construction and services. This later definition is the more common in economic geography. It is therefore quite acceptable to speak not only of, say, the steel industry or textile industry, but also of the tourist industry and even the music industry. However, the most usual classification of industry is in four-fold and it is based on the nature of the work undertaken and the stages in the production process. What is Industry?An industry is an economic activity which is concerned with the production of goods, extraction of minerals and provision of services Different Types of Industry
Most of the goods we buy have passed through or have been affected by all the four types of industries. For instance, the motor car we purchase, mining for iron ore and coal, quarrying for sand and collecting of tree rubber are all examples of primary activities. The transformation of these raw materials into steel, glass, tires and the subsequent manufacture of the car itself may all be grouped into secondary activities. However, the removal of the car to the showroom and its sale to the consumer are part of tertiary industry. Quaternary activities are necessary for all these processes to take place since they include the management of the individual firm, the supply of finance and the design of the final products. These are all termed quaternary activities. The consumer requires quaternary services in the firm of motor assurance and possibly a bank loan with which to purchase the car. Industrial LocationThere are two types of approaches to industrial location; one is regional and attempts to assess the reasons why certain locations are attractive to industrialization generally. This may be viewed on any scale from local (within a town a country) to international (between countries, continents and latitudes). The second approach is industrial in perspective and seeks to explain why an individual industry or firms are attracted to a particular location. This involves the study of a particular need of different industry, why those of one industry may differ from those of another. In this case, these two approaches complement one another. The factors to be considered are many; they include aspects of physical geography, economics, human, social considerations and politics. However, to generalize about the relative importance of each these factors is dangerous; this is partly because they are not in isolation but in complex inter-relationships and partly because their significance may change over time between areas and from industry to industry. Even so, it is probably true to say that whilst, environmental factors determine the overall regional pattern of industrialization, economic factors are more likely to direct industries to particular sites. In deciding upon a final location, the industrialist must weigh up the relative merits of all potential locations and then select that which best suits the particular need of the firm. This doesn’t mean that he will choose the location with most advantages. Usually, areas possess advantages and disadvantages and manufacturing plant is likely to be located where the favorable factors outweigh the unfavorable factors. However, it should also be noted that the best location for one firm might not be the best for another and that the advantages as perceived by one industry may be viewed as disadvantages by another, these perception vary from individual to individual. If an industry has a particular economic bias, it is dependent: Primary industries should be located where there are natural resources and the tertiary and quaternary industries, which are market oriented, should be found in urban areas. However, what will now be the case of secondary industries which are not oriented toward any one economic factor? The optimum location may be near raw material or near labor supply, or even near markets. Some industries like light engineering seem not to be tied to any special kind of location and are called footloose. Even those ones that appear to have similar economic structures and requirements are frequently found in different types of locations. Pottery making is an example of secondary industry Factors of industrial location (Locational factors)
Dr. Brown is the founder of Jotscroll, he is a Medical Doctor, Entrepreneur, and author. Dr. Razi Brown holds a medical degree from the University of San Diego. He has invested in many startups and is currently working on his fifth book to be published in the upcoming year. |