The main factor of production location.

question the location of production is crucial and requires careful analysis.The fact that each industry depends on many factors.The task of the economist - a place to find the most advantageous business development to production was the most cost-effective.

What is the factor of production location

Geographical location of industries is determined by the combined influence of many factors.Their quantitative and qualitative relations form different options of industrial enterprises.This depends on the spatial orientation of the security of the country or individual regions of natural, labor, material resources, the level of scientific, technological and economic development of the area, the existing infrastructure and historical features of the territory.

In economics there are several interpretations of the concept of "factor of production location."Some scientists mean by factors resources and conditions necessary for the production of a certain type of product, a set of which differs in different geographical areas.Others argue that the factors of production are divided into natural wealth and public resources (capital, international relations, government influence, the activities of large companies).

Basic patterns of distribution of productive forces

Placing production takes place on the laws, which is an identification of trends in the distribution business.

These patterns suggest:

• effective accommodation that would ensure the most efficient use of resources;
• the close relationship between the location of production and the level of the economy in the region;
• dependence of the enterprise on the specialization of the local workforce;
• evaluation of complex development of economic relations in the region.

Analysis of the factors of production location

facility location is the key to its effectiveness.It is a kind of economic benefit, the result of which is manifested in the reduction of production costs and its distribution.

to select the most advantageous placement of the company is required to undertake a detailed cost analysis on the basis of knowledge about the factors that affect the location of production.So, you need to calculate the following indicators:

1. costs for rental or purchase of land.
2. cost of fixed capital - machines, vehicles, buildings.
3. costs for raw materials.
4. labor costs.
5. transportation costs.
6. interest rate on lending.
7. Amortization of capital assets.

of these types of costs in the location of production to the greatest extent affect the cost of raw materials, labor, transportation and fuel.

classification factors

Depending on the functions performed by such factors distinguish the location of production:

1. Natural - degree of security of the region's natural resources;climatic, orographic, geological and other conditions.
2. Socio-demographic - availability of labor and the state social infrastructure.
3. Scientific and technical - the level of technical and technological equipment of the region.
4. Economic - development of the transport network, the geographical position of the region, the construction period, the amount of capital and product costs.
5. Environmental - the ability to create favorable conditions for working and living conditions of the local population, the extent of the use of natural goods without damaging the environment.

Every industry has its own set of specific factors.For example, the placement of the key factors of production engineering - a scientific and technical base, cooperation, specialization and availability of labor.

experts analyzed the resource intensity of the economy and all areas to assess the extent to which they affect the main factors of production location.The table illustrates the degree of dependence of the main industries of the various resources.

rating scale: 0 - no impact;1 - weak effect;2 - strong action;3 - factor plays a decisive role.

of the number of points can be seen as different sectors of the economy affected by the same factors of production location.The table shows the strong dependence of the light industry on the location of the consumer, the economic production of the resource, fuel and energy factors, and engineering of the labor potential of the region.The more developed a country is, the higher the proportion of industries that tend to the consumer.Thus, we can talk about the global trend of increasing consumer influence factor.

Natural factors

Natural factors influencing the location of production, have been addressed in the early stages of industrialization.It was only in the era of scientific and technological revolution, this relationship has weakened slightly.Yet for the extractive industries, this group continues to be the main factors.

Many fields and pools of natural resources is practically devastated, so the mining companies began to move to new places of development, which in most cases are difficult and are characterized by extreme conditions.For example, oil and gas production in the sea and the bay.However, the development and exploitation of new deposits of natural resources requires substantial capital investment and faces environmental pollution.

sociodemographic factors of production location

Socio-demographic factors include population, the state of social infrastructure, an analysis of the quality and quantity of labor resources.

Factor workforce estimated cost of work per unit of manufactured products.For comparison, using indices of wages and the cost of the finished product.There are three groups of man-hours of production:

• vysokotrudoemkie - the high cost of human labor in the production of small quantities of products (production of TVs and electronics, textiles, machine tools);
• srednetrudoemkie - about the same ratio with the other labor costs (chemical and light industry);
• not labor - the minimum cost of labor per unit of production worker (energy industry, metallurgy).

Scientific factor of production location

In an era of scientific and technological revolution that factor as a separate group because of its strong influence on the location of production.This primarily refers to the high-tech industries, which are mostly concentrated in big cities.For example, in France, most of the researchers working in Paris, in Japan - in Tokyo.In some countries, it created whole "city of science", specializing in different studies.

In a period of rapid scientific and technological development of new forms of territorial localization of science - technology parks and techno.First, they have embraced the US (Silicon Valley), then moved to Western Europe, Asia and other countries.

Technopark - Connect research firms that arise around a large laboratory, institute or university.The main purpose of this park is to reduce the terms of the practical implementation of scientific ideas.

Technopolis - specially created scientific community, which is engaged in the development of new innovative technologies, training of qualified personnel and the development of knowledge-intensive industries.Technopolis is the founder of Japan, but soon the idea taken up by other countries.

economic factor of production location

Current market conditions require financial factors to consider when choosing a place of localization companies: investment conditions and taxation, the availability of production facilities and infrastructure.Through financial incentives, many cities and countries around the world have strengthened their economies (Hong Kong, Singapore, South Korea).Now, this factor has a positive effect on the development of production in Poland, Hungary, the Czech Republic.

also economic group of factors include technological development, the ability to attract investment and capital from, geographical location, transport connections and economic relations with the major regions and countries, international activity.It is considered to be an influential factor in the transport of production location.Given the costs of transportation, the company tends to be a source of raw materials or to the consumer.If the cost of fuel and resources are less than the cost of finished goods, production can be placed at greater distances from the raw materials.In the opposite case, the localization of the company should be selected near the resources to reduce transport costs.

environmental group factors

Due to the sharp increase in world production of more and more companies take into account the environmental factors that affect the location of production.Rapid technological development, the growth rate of extraction of natural resources to a great extent increased the burden on the environment.As a result, in some regions, environmental problems, which at any moment can turn into natural disasters.

The most unfavorable industries include chemical, cement, metallurgy, nuclear power and others.Accommodation companies in these industries requires very sophisticated approach.