Mastergp
Verified member
There are many factors that determined this they include the following :
Proximity to source of raw materials ;
We have come to also see that cement producing industries should be located close to source of raw materials to reduce cost of transportation. Perishable goods like fruit palm oil industries etc should be located near their raw materials.
Nearness to the market :
There should be ready market for the product of any industry to be sited in a place.
Fragile goods like glass, bulky goods like cement and other perishable goods should located near the market. And such of the product located or directed towards the market are called market oriented.
Having much capital:
There should be enough capital to purchase industrial input before and after setting up industries. Entrepreneur must have great access to loans and industries which have or use heavy machines or which require large capital for their operation are refer to as capital intensive industry.
Nearness to source of power:
It is important for one to consider the nearness of his industry to power most this industries make use of big machine and source of power should be there as standby so as to keep the work flowing.
Proximity to source of raw materials ;
We have come to also see that cement producing industries should be located close to source of raw materials to reduce cost of transportation. Perishable goods like fruit palm oil industries etc should be located near their raw materials.
Nearness to the market :
There should be ready market for the product of any industry to be sited in a place.
Fragile goods like glass, bulky goods like cement and other perishable goods should located near the market. And such of the product located or directed towards the market are called market oriented.
Having much capital:
There should be enough capital to purchase industrial input before and after setting up industries. Entrepreneur must have great access to loans and industries which have or use heavy machines or which require large capital for their operation are refer to as capital intensive industry.
Nearness to source of power:
It is important for one to consider the nearness of his industry to power most this industries make use of big machine and source of power should be there as standby so as to keep the work flowing.