Question

How is capital essential in determining the location of industry ? What relation does investment and capital have with LOCATION of industry ?

Answer 1

Dear Student,

a. Industrial location is dependent on may factors availability of labour, raw material , proximity to market and capital
b. Certainly capital is an important factor as industries require huge cash inflow to remain operational
c. Thus, it looks for a location whereby credit,, banking facilities are easily available
d. Even , availability of cheap labour , raw material impacts the overall cost of production of an industry thus , again having an implication on its capital
e. Good banking, insurance, financial assistance and other related facilities certainly invites large number of industry .


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