The factors that an investor keeps in mind while choosing a suitable location for industry may be any and all of the following :-
1) Easy availability to manpower and raw material. For that reason sometimes textile industries are set up far away from cities and near rural areas as that allows them to have an easy access to manpower from the rural settlements during the off harvest days and an easy availability of raw materials.
2) Trade zones or tax free zones help the investors to save cost.
3) Places affording them nominal charges to transportation related with goods and services. For that reason several industrial zones are established near ports.
4) Distance from settlements as the pollution does not affect settlements and places that provide more convenience in way of establishing treatment plants when getting rid of waste.
external economies of scale
availability of labour
transport and communications
personal preference of the owner
There are various factors which may impact the location of the industry. The first and the foremost factor is the availability of resources. For the appropriate location of an industry, it should be near to the resources, otherwise the companies have to pay heavy distribution costs to the suppliers. Secondly, industries can result huge wastes of various kinds therefore, they should be far away from the residential areas. Thirdly, health safety is very important for the employees therefore, it is the factor which needs to be considered before selecting the location of any industry. In addition, availability of conveyance is another important factor affecting the location of industry.
The main factors affecting the location of industries are -
Few factors affecting the location of industries are:-
Easy availability of manpower and raw material.
Trade zones or tax free zones help the investors to save cost
Places affording them nominal charges of transportation related with goods and services. So, several industrial zones are established near ports
They should be located in areas where easy access to markets is available. Otherwise frozen goods may get spoilt and fragile goods could suffer damage