Answer the questions
Answer the questions
- The simplifying assumption that Weber made in his theory of plant location held that the transportation costs of raw materials and the final product were influential. In other words, the location of an industry was ought to be located where the cost of conveying the resources along with the end products were at a negligible. As a result, he brought about the concept of weight-gaining case and the weight losing case. Hence, the industry was better located at a central place more especially between the raw materials and the market.
It was, without a doubt that the Weberian pursuit for the least-cost location differs from the recognition of the spatial margin of profitability. For instance, profitability plays a central role in the choice of situation for an production under the spatial margin of profitability. On the contrary, the cost of transportation takes the central role in the determination of an industry location in the Weberian pursuit for the least-cost location. In addition, while industries might maximize profits while, within the optimal location as per the margin, the weight losing case and the weight-gaining case might be considered for location selection.
On the case of the location of traditional heavy industry clusters, the Weberian theory expounds that the least cost theory would be applicable. Under the theory, it was held that the location of the industry was influenced greatly by the terms of transportation as well as labor and agglomeration of talents, services for the industry and other supporting facilities. In other words, while the transportation cost was imperative in the influential of the industry location, the raw materials as well as the finished products were only optional determinants (Getis, 2014).
- The processes of outsourcing and comparative advantage developed more in the 21st century, and it entails the process through which an organization delegates some of its functions to another corporation for profits purposes. It was, without a doubt that the concept obstructed the industrial structure of advanced developing countries. Withdrawal talent pool was one of the major ways that the countries were affected.
- There are concerns that would be expected for the economic, geographic patterns as the high-tech industries and quaternary and quandary employment become more significant in the economic structure. That would be based from the fact that the services are all interrelated in the world trade patterns. The tertiary offers non-goods production activities as well as offering services to goods producers and the community (Getis, 2014).
On the other hand, the quaternary industry comprises of advanced forms of services that would be termed as the knowledge industry performing at the hospitals, accounting departments, and corporate offices. On the contrary, the quinary industry would be comprised of highly specialized and advanced services such as scientific research, high level of corporate executives, and government headquarters and the equivalent.
- There are various motivations as well as rewards that a developing country’s firms derive from the process of out-sourcing. Importantly, the firms turn to such an undertaking with an objective of generating more value as well as taking the opportunities of venturing into other new markets. An additional reward that the developing country’s firms stand to gain would include but not limited to speed and modernizations in emerging business applications (Getis, 2014). They are as well sure to benefit from the flexibility and access to technological skills from the out-sourced corporations.
As it would be deduced from the book, the process of out-sourcing was favorable to the home country’s firms only for a short time. Hence, it implies that the process turns to be unfavorable to them in various ways. The process of out-sourcing results to a decreased customer satisfaction over time as a result of various issues such a language barriers and reduced customer loyalty. Furthermore, the process indubitably denotes job eliminations something that give way to destructive energy on the remaining workforce. Their morale would be affected, and hence, their productivity. Other ways that the firms might be affected by the process would be the reduced levels of confidentiality and the shrinking the talent pool (Getis, 2014).
Although the process of out-source has turned out to be a 21st century phenomenon, less is likely to be done by most companies for them to remain profitable without turning to the process. The majority of the firms have recorded an increased figure in terms of profits through the process. It denotes that no firms would neglect the process and remain to be profitable as compared to those that have adopted the process.
Getis, A. (2014). Introduction to geography. New York: McGraw-Hill Education