These can influence industrial location in different ways.Large companies are often spilit into seprate division for policy making research and development RandD and production.This is usually sensible becuase each division will have different locational requirements the headquarters and RandD division may be located in the core market area while the production may be located in a low cost peripheral area. However all division ofvthe company must be strongly linked to each other not only through transport network but also through telecommunication system.
Perhaps the most influential and innovative change in industrial location this coountry has been the development of industrial estates or parks.Many of the traditional central area of large cities have been abandoned in favour of the modern peripheral industrial park.
All industries attempt to minimize thier cost and maximize thier profits.In choosing a location they must consider not only costs of transport,labour,raw material,land and plant but also the location of the markets for thier products or services.There have been a number of important therioes of industrial location which use cost as a basis for decision making.Some famous therioes are
1. weber,s model of industrial location 1909
2. Losch,s market area theory 1954
3. Smith,s spatial margins model 1980.
Most of the theories of industrial location tends to aasume single product companies.Today most companies have a market orientation and are multi product busniesses receiving raw materials or components from a wide variety of sources as well as marketing thier products in many areas.Many companies are multi plant busniesses with a main factory and many satelite or branch plants.Therefore is it only the market access of a single plant that has be considered but the costs revenues and distances for the overall company or group. This is why study and interpretation of market access in relation to industrial plant location has become an international and very complex issue.Multinational companies such as unilever,nestle,and ici manufacture goods or provide services is an several countries while being administered from the country.Their decisions on industrial location must take into account not only market access within indiviidual countries but also group profitability across many countries....
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