Weber’s theory of location

Core Idea

Alfred Weber's theory, developed in 1909, states that industries locate where production costs are minimized. He emphasized transport costs and agglomeration forces as the main factors influencing location.

Key Concepts

• Transport Costs:

  • Depend on the distance between raw material sources, factories, and markets.
  • Increase with distance.
  • Industries seek locations near raw materials or markets to reduce these costs.

• Agglomeration:

  • Refers to the clustering of industries in a specific area.
  • Benefits include shared resources (suppliers, labor, knowledge).
  • Reduces production costs through efficiencies and shared infrastructure.