Factors Influencing the Development of an Industry (Leaving Cert Geography): Revision Notes
📚 Revision Notes
Factors Influencing the Development of an Industry or Activity
Industries or economic activities develop based on a combination of physical, human, economic, and political factors. Here are the key factors:
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Physical Factors:
- Raw Materials:
- Proximity to raw materials is critical for industries that depend on bulky or perishable resources (e.g., steel industry near coal and iron ore reserves).
- Climate:
- Suitable climate can encourage certain industries (e.g., agriculture, vineyards in sunny regions).
- Land:
- Availability of flat and large land areas for factories and warehouses.
- Energy Sources:
- Accessibility to power (e.g., industries near hydroelectric power plants or natural gas reserves).
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Human Factors:
- Labour Supply:
- Availability of skilled and unskilled labour.
- Costs of labour (e.g., industries in developing countries to reduce production costs).
- Transport and Infrastructure:
- Efficient transport networks for raw materials and finished goods (roads, rail, ports).
- Reliable communication infrastructure.
- Market Proximity:
- Industries often locate near large markets to reduce transport costs and ensure fast delivery.
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Economic Factors:
- Capital:
- Industries need significant investment to set up and operate.
- Areas with banks, investors, and incentives attract industries.
- Economies of Scale:
- Industries may locate in clusters to benefit from shared services, labour pools, and suppliers (e.g., Silicon Valley for tech).
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Political Factors:
- Government Policies:
- Tax incentives, subsidies, and grants encourage industrial development.
- Industrial zones or free-trade zones.
- Stability:
- Political and social stability attract foreign and local investors.
Example:
Steel Industry:
- Physical Factors: Proximity to coal and iron ore reserves (e.g., Ruhr Valley, Germany).
- Human Factors: Skilled workforce and excellent transport infrastructure.
- Economic Factors: High demand for steel in construction and manufacturing.
- Political Factors: Government policies encouraging industrialisation.