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WHO WAS ALFRED WEBER?
Alfred Weber (30 July 1868 – 2 May 1958) was
a German economist, sociologist and theoretician of culture whose work was influential
in the development of modern economic geography.
From 1907 to 1933, Weber was a professor at the University of
Heidelberg until his dismissal following criticism of Hitlerism.
A. The centre of consumption are
fixed
PRODUCTION
MANUFACTUREOF
PARTS
ASSEMBLY OF PARTS
FOR FINISHED GOODS
PACKAGING OF FINISHED GOODS
B. The cost of raw material is the same at all places even though the
distribution of deposits of raw materials is uneven.
FACTORS INFLUENCING LOCATION OF PLANTS
1.Primary or regional factors
2.Secondary or agglomerative and deglomerative
PRIMARY FACTORS
These factors influence the location of plants over different regions.
Weber developed his theory on the basis of two regional factors:-
Transportation costLabour cost
TRANSPORTATION
A plant tends to be located at a site where the total cost of transportation of materials and products is minimum
Wheat field Factory
Localized materials
These materials are confined to a particular region.
Example:- iron, gold, cotton etc
Pure materials
Pure or non-weight loosing materials do not loose their weight in
the process of production.
Such materials do not pull plants to their place of deposits.
Example:- cotton, wool etc
Gross materials
Gross or weight-losing materials impart a small part or none of their weight to the
finished product.Such materials attract production towards
places of deposits .Example:-sugarcane farms, coal etc
Material index
On the basis of the above reasoning Weber developed a mathematical formula to measure the relative pull of materials while those with low materials and the
market on industrial location.
Material index=weight of localized material/weight of the finished goods
If material index > 1 then plant will be located near the resources .
If material index < 1 then plant will be located near to the market.
Labour costCost incurred to employee
workers
These costs directly effects the production of the firm.
Least transportation
cost
Resources Factory
A plant may deviate from the point of least transportation
cost when the savings in labour cost are greater than the additional cost of transportation at the new centre.
Isodapanes
Isodapanes represent points of equal transportation cost including assembling cost of materials and distribution cost of
finished product.
Critical Isodapane
It is a point where
Transportation cost = Labour cost
i.e. where both labour cost and transportation cost are minimum as compared to their total
cost any where else.
1. Labour cost per unit
It is measured by labour cost
index i.e. proportion of labour cost to the weight of the finished
product.
To measure the attracting power of labour, Weber gave the following
formula:-
Labour Coefficient=labour cost index/ locational weight
Higher the labour coefficient , greater is the tendency for a plant
to be located near the centre of cheap labour supply.
Secondary FactorsSecondary factors lead to
concentration or dispersal of industries. They are;-
Agglomerative
Deglomerative
AgglomerativeAgglomerative factors are the external
economies which result from concentration of industries at a
particular place
There are no fixed centre of consumptionTransportation rates are not uniform
Fixed centers with unlimited supply of labour is not true
Wrong Assumptions