Weber explains the optimal locations of manufacturer in terms of three expenses. Discuss the expenses
Weber explains that there are three expenses associated with manufacturer’s location. they include transport expenses, labor expenses and agglomeration expenses. Transport expenses refer to the cost incurred on transportation of raw materials and finished products to and from the industry. An industry should be located in a place where the cost of transportation will be minimum. The labor expenses refer to the tendency of locating industries in areas with cheap labor. Agglomerative factors on other side, refer to external economies, baking and insurance services. industries tend to centralize in a particular where there are agglomerative factors.