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Question
Write short note
Economies of scale
Solution
- Various facilities lead to establishment of industries in a region.
- By using the available opportunities according to ‘economies of scale’, the region attracts more industries with time.
- Consequently, concentration or agglomeration of industries occurs in this region.
- As a result of this, the physical and economic factors have no influence on location.
- A special characteristic of such a region is that industries that are mutually complementary to each other are established here. For example, all over the world, places where iron and steel industries were located saw the development of industries which use steel as raw material, viz. utensils, automobile accessories, locomotives, etc. This in turn led to establishment of car- manufacturing units, packaging industries, railway engine manufacturing industries, etc.
- Due to such agglomerations, new industries get more profit as compared to low investment due to ‘economies of scale’.
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RELATED QUESTIONS
Read the following passage and answer the question given below
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Iron and steel production started from the 18th century. About 50 to 60 countries are engaged in iron and steel production. Some of these countries are leading and account for about 80% of world production. These countries are United States, Russia, Japan, Germany, Great Britain, France, Italy, Canada, Czech Republic, Slovakia, Belgium, Brazil, India, China, Taiwan etc. The industries in which machinery is manufactured are known as 'engineering industries'. The engineering industry is involved in the manufacture of heavy and bulky machinery, such as railways, aircraft, shipbuilding, clocks, bicycles and other small items. These industries depend on iron and steel industries. These industries are mainly set up in economically developed areas. As railway locomotives are set up along the coast, shipbuilding industries are set up mainly along the coast. The textile and sugar manufacturing industries are attracting markets. But recently the approach of the machine industry has shifted from place to place, attracting more and more urban areas. The engineering industry is understood as the secret of the nation's development. The availability of skilled labor, raw materials like basic iron and steel, modern and technologically advanced regions and other factors play a vital role in the localization of the engineering industry. |
- Which countries are leading in iron and steel production?
- Which industries are mainly set up in economically developed areas?
- The engineering industry includes the machinery required for the manufacture of which goods?
- What factors play an important role in the localization of the engineering industry?
