World Industries Localisation

It refers to a functional unit where the raw materials are physically or biochemically transformed into consumerable products by means of fabrication, procession, manufacturing or value addition with the purpose of profit making by retail or wholesale trade.
Manufacturing refers to the processing and value addition of raw materials into finished goods for the purpose of sale in the market.

Industries are classified by various Criteria :

2. Secondary Industry

On the basis of  Scale :
1. Large Scale
2. Medium Scale
3. Small Scale
4. Cottage / Household Industries.

On the basis of Final Products :
1. Basic / Heavy Industries - Iron & steel, cement, aluminium
2. Light Manufacturing - Textiles, apparels
3. Precision Mapping Industries - watch, chip

Factors of Localisation of  World Industries : 

Industrial geography is based on two Paradigm -
A) Why certain industries are located at the place they are found - raw materials and transportation cost
B) Why certain places are attractive to certain Industries
These two fundamental questions decides Industrial Evolution in two phases -

Phase 1. When first principle was applicable it denotes the role of raw materials and transportation cost, for determining the industrial location.

Phase 2. The modern phase of industrialisation where the market based industries dominate and export orientation exert greater pull than the raw material concentration.
Example - Establishment of TISCO at Jamshedpur and Visakhapatnam at Viazag Steel Plant along coast present two different cases of industrial evolution.

Factors of World Industrial Localisation can be Classified Into :

1. Physical Factor :

* Favourable climate - specific Temperature, precipitation  and humidity.
* Plain area or gentle slope (good relief)
* Availability of water (hydrology)
* Topography & Terrain - hilly states of India are least industrialised due to inaccessibility and lack of transportation.
* Good drainage system
* Proper accessibility
* Location (e.g. coastal location have market oriented advantages, export based push)

2. Non-Physical Factors : 

* Political Factors : Good governance, Stable Government, simple law (e.g. Politically instable regions like Africa and Central Asia discourage the industrial location. India's Northeast region has same cause)

* Issues related cultural, social & religious matters (e.g. No beef industry develop in India, No cake industry develop in west Asia, No banking industry develop in west Asia).

*Demographic : Industry development depends on the working age of that area.

3. Dynamic Factors :

* Technological Industries development e.g. Japan, South Korea, China.
* Role of international institutions.
* Government Policies
* Demand & supply mechanism
* International trade (Bilateral & Multilateral trade).

The earliest model for the development of Industrial regions, complex was given by Thompson & Johnasson. This term is called "Concentration Theory". It encourage five-stages for growth of Industrial regions -

Stage 1. Natural Advantage :

 The presence of Raw material & other factors of production like labour capital etc is called natural advantage.

Stage 2. Comparative Advantage : 

Other than natural advantage when geographical factors are favourable like accessibility, location, better climate, near as to the port or proximity to a major transportation line provide the  comparative advantage for industrial location. E.g. Odisha, Jharkhand and earstwhile Bihar had better comparitve advantage because it has confluence of Subarnrekha and Khorkai and it was connected to Kolkata-Mumbai line.

Stage 3. Acquired Advantage :

One industry develop infrastructure, labour, market etc. Other Industries take the advantage of this. Acquired advantage one of the industry fires its location at a place, it develops it's infrastructure and like an economic magnet. it posses labour migration.

Stage 4. Cumulative Advantage : 

(Detroit industry complex is a result of cumulative advantage created by Pittsburgh - Eric Industrial complex)
The place having the initial advantages attract more Industries, a basic and heavy industries have forward and backward linkages. With other industries which are either ancillaries or complementary, supplementary and parasitic in nature.
Cumulative advantage means development of linkage between several Industries. e.g. Based on Iron & Steel development of capillary or automobile industry is cumulative advantage. They can use the similar infrastructure like power, transportation & communication.

Stage 5. Agglomerative Advantage :

When three or more basic industries cluster togather with their linked Industries. The phenomenon is referred to as Industrial agglomeration. The product of Agglomeration is industrial

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