Weber Model Criticisms

Contributions The founder of modern location theory. Distinguished between ubiquitous and localized / sporadic / fixed and gross and pure RM Useful to distinguish between the orientations of different industries A useful conceptual instrument for understanding broad locational patterns of industries (macro-scale) Useful starting point for locational studies in industry Material index is useful as a general guideline.

Demerits What factors did Weber consider when constructing the theory? Do you think these factors are enough to explain the locations of industries? If not, what other factors do you think are important?

Demerit 1: not comprehensive enough to explain industrial location The Weber model only considers transport cost labour cost and agglomeration factors are the 2 deviational forces In reality, there are far more factors affecting industrial location Geographical Institutional / political Behvioural Environmental / social

Demerits Do you think that raw material sources are fixed points? Look at the real world. Does raw material source occur at point? If not, what pattern does it form?

Demerit 2: RM source does not occur in point Various primary industries, farming, fishing, foresty, mining, supply RM to processing industries occur in areas rather than at points Farming region: S. China Mining areas: coal mines in NE China Forest: pine forest in Scandinavia

Demerits Do you think transport cost are directly proportional to the weight of freight carry? Do you think they have linear relationship?

Demerit 3: Unrealistic transport cost structure Transport costs / freight rates are not directly proportional to the weight of freight carried / distance or length of shipment. Transport costs tend to be stepped

Demerit 3: Unrealistic transport cost structure Transport costs tend to be tapering The per unit transport cost over a long distance is lower than that for a short distance

Demerits Comment on the types of transport available in Weber’s theory. Does it coincide with the real world?

Demerit 4: Variations in transport type used Transport cost differs according to the type of transport used Modern transport carriers nowadays are larger and faster, involving lower cost

Demerit 4: Variations in transport type used Road transport is more suitable for short-distance haul (steeper gradient) Rail transport is more suitable for medium-distance haul Sea transport is the cheapest for long-distance haul (gentler gradient) Therefore, when constructing isodapanes, the type of transport used should be specified.

Demerits “Movement of goods was equally easy over all forms of surfaces / topography” Do you agree with the above statement?

Demerit 5: Importance of transport cost declines The density of transport network varies with different modes of transport and with topography. Rail / road transport is more well-developed on flat land Sea transport is only well-developed in good ports / coastal locations

Demerits Do markets occur in fixed points in reality? How does modern technology modify the concept of market in real world?

Demerit 6: Markets are not fixed points Market areas in reality Extent of market areas can be increased by modern tele-communication technology Development of e-commerce leads to the globalization of markets Extension of market areas to overseas / unlimited market

Demerits Does perfect competition occur in reality? Is the demand for goods the same with increasing distance from the plant?

Demerit 7: The existence of perfect competition is perhaps the most unrealistic of all the assumptions made by Weber Perfect competition assumes that demand is constant spatially. This is unrealistic as demand often decreases with increasing distance from the plant.

Demerits How did Weber describe the purpose of the industrialists? Do they share the same rationale in real world?

Demerit 8: Profit satisficers According to Weber, all industrialists are economic men, who aim at maximizing profits and minimizing production costs They are profit maximizers. But many industrialists are actually profit-satisficers. Job satisfaction is more important than profits.

Demerits Production costs and market prices of goods are constant according to Weber. Do you agree?

Demerit 9: costs and prices are dynamic in reality Production costs are affected by availability of labour, transport cost, land price…etc Prices of goods are affected by market demand which is fluctuating.

Demerit 10: Disregard locational interdependence of firms Firms are not independent in real world. Industries are interdependent and occur in groups / clusters but not one single point. Industrial clusters in PRD, China and SE Honshu, Japan

Demerit 11: Labour quality is more important than labour cost Weber only considers one aspect of labour: cost Labour quality? Labour mobility?

How to assess the applicability of the model to reality? How does Weber consider transport, labour and agglomeration? Which aspect of these factors does Weber consider? Are they enough to reflect the reality? If not, what new factors should be included to determine industrial locations? Give examples to show that these factors are more important than those mentioned by Weber.