SET Industrial Geography

Theories of industrial location, including Alfred Weber’s Least Cost Theory, E. M. Hoover’s Theory of Industrial Location, and August Lösch’s Spatial Economics, offer insights into why industries cluster in certain areas. Factors such as transportation costs, consumer demand, and market potential drive industrial location decisions, shaping regional economic development and innovation.

Industries play a pivotal role in shaping the economy. Classification based on raw materials, goods produced, and scale of operations is crucial for policymakers, economists, and businesses. It aids in policy formulation, resource allocation, economic and market analysis, and academic research. Industrial clusters, emerging industries, and GICS further impact economic growth and statistics.