AP Human Geography Industrial Location Theories – Flashcards
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Manufacturing plants will locate where costs are the least
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Weber's Model/Least-Cost Theory
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Location of an industry cannot be understood without reference to other industries of the same kind
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Hotelling's Model/Locational Interdependence Theory
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Manufacturing plants choose locations where they can maximize profit.
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Lösch's Model/Zone of Profitability/Spatial Margin of Profitability
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In Weber's Model, there are two types of industries. What are they?
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Bulk-Gaining Industry & Bulk-Reducing Industry
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In what theory is the fundamental principle triangular?
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Least-Cost Theory
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Three basic expenses in Weber's Least Cost Theory
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Transportation, Labor, Agglomeration
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Agglomeration
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The clustering of people/activities for mutual advantages
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Deglomeration
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Where industries leave crowded areas
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Most important category/expense in Weber's Least Cost Theory
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Transportation
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Best example of agglomeration
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Detroit (1930s-60s)
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Example of deglomeration
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Sears Tower moved from Chicago because it was too expensive
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Six assumptions made in Weber's Least Cost Theory
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Area is uniform/isotropic/plain; manufacturing involves a single product, 2 inputs, one market; labor is infinite & immobile; transportation is equal; no shortage of inputs
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Weber's least transport cost is determined by means of the
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Locational Triangle
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Weber's Least Cost Theory takes in situation factors, but it does not take in...
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Site Factors (land, labor capital)
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Location of bulk-reducing industries
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Closer to inputs
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Location of bulk-gaining industries
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Closer to market
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Major focus in Weber's Least Cost Theory when it comes to costs
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Variable Costs
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Major focus in Hotelling's Locational Interdependence Theory when it comes to costs
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Variable Revenue
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What type of market will Hotelling's Locational Interdependence Theory have?
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Linear market
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Assumption in Hotelling's Locational Interdependence Theory
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Demand is inelastic (not sensitive to change in price and will purchase from closest vendor)
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What encourages industrial dispersion?
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Price sensitivity/elasticity of demand
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Price Sensitivity/Elasticity of Demand
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Encourages industrial dispersion
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Theory that uses a formula to determine the point of maximum profit
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Zone of Profitability/Spatial Margin of Profitability
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Break-even point
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Where loss & income are the same
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In Lösch's Model, the left & right of the zone represents
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Distance decay
