Question
Discuss how distance is the most important factor in determining the location of the industries.
Solution
The industries are set up keeping in mind the distance from raw material and other inputs to the industry as well as the market to sell the goods.
1. Geographical distance in terms of km, reduces the cost of products because more in the distance of inputs and outputs from the industry more is the cost and times on moving the products.
2. This may be explained as economic distance as it influences the cost and time involved in the movement of products.
3. Economic distance is determined by the mode of transport, the type of commodity and freight rates. The lower transportation cost helps in reducing the cost of production. Such as jute mills in India are located along Hooghly river has reduced the cost due to cheap water transport.
Thus the prime concern of an industry is to reduce the economic distance. Therefore transport system plays an important role in the location of an industry.
