APHG U7L2

What is the main focus of Least Cost Theory?

• Maximizing transportation costs and agglomeration

• Balancing transportation costs, labor costs, and agglomeration

• Maximizing transportation costs and labor costs

• Minimizing labor costs

What is the key assumption about labor in Least Cost Theory?

• Labor is mobile and unlimited

• Labor is immobile and unlimited

• Labor is mobile and limited

• Labor is immobile and limited

What is the main difference between Bulk-Reducing Industry and Bulk-Gaining Industry?

• Bulk-Reducing Industry focuses on labor costs, while Bulk-Gaining Industry focuses on transportation costs

• Bulk-Reducing Industry locates factories near raw material sources, while Bulk-Gaining Industry locates factories near the market

• Bulk-Reducing Industry locates factories near the market, while Bulk-Gaining Industry locates factories near raw material sources

• Bulk-Reducing Industry focuses on transportation costs, while Bulk-Gaining Industry focuses on labor costs

What does the locational triangle represent in industrial location theory?

• The three main factors to consider when opening a factory

• The spatial grouping of businesses to share costs

• The balance between transportation costs, labor costs, and agglomeration

• The relationship between market location and raw material sources

What did Weber argue companies should minimize and maximize in industrial location?

• Maximise labor costs and transportation costs, maximize agglomeration

• Minimize labor costs and agglomeration, maximize transportation costs

• Minimize transportation costs and agglomeration, maximize labor costs

• Minimize transportation costs and labor costs, maximize agglomeration

What are some criticisms of the assumptions in Least Cost Theory?

• Companies often sell multiple products to multiple markets

• Isotropic planes rarely ever exist

• Labor is relatively mobile and is not unlimited

• Populations are homogenous with similar needs

What is the Break of Bulk Point in industrial location theory?

• A location where raw materials are processed

• A point where agglomeration is maximized

• A point where labor costs are reduced

• A location where goods are transferred from one means of transportation to another

What is the main factor that dictates the location of factories based on energy needs?

• Power sources needed to produce goods

• Availability of raw materials

• Proximity to labor markets

• Access to international markets

What is the concept of Footloose Business in industrial location theory?

• A business that is tied to a specific geographic area

• A business that can easily relocate to a new location

• A business that focuses on labor-intensive processes

• A business that is resistant to technological changes

What is the main incentive for companies to engage in offshoring?

• Government subsidies

• Proximity to raw material sources

• Access to skilled labor

• Lower cost of operation