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What is meant by the term optimal location? - Assess the value of classical location theory in explaining the location of manufacturing industry today.
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| Submitted: Fri Feb 20 2004
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Industry Essay (a) What is meant by the term optimal location? (5) (b) Assess the value of classical location theory in explaining the location of manufacturing industry today. (20) (a) Optimal location is the location of a factory where it's at least cost therefore making maximum profit. This is determined by three main factors which are transport costs, labour costs and agglomeration economies. This was based on Weber's theories of 1909, but did not always fit the pattern due to outside influences. One example being that of prestige in certain economies such as pottery. Other theories were than introduced such as the profit maximisation theory that said factories located within a zone of profit and if they were making profit they were in an optimal location. The company Dyson moved to Malaysia, an LEDC to gain cheaper labour even though transport costs are high but as transport costs are so cheap in...
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