- Automobile industry
- Shipbuilding industry
- Mock Questions
In the previous article, we saw the geographical factors affecting the location of steel industry and heavy engineering industry in India and abroad. Now moving to next topic:
- Automobile industry requires large variety of raw materials from other industrial sources viz. steel, nonferrous metals, window-glass, plastic, rubber, wood, paint, textile, electronic cables, seat cushions etc.etc.etc.
- For continue mass production on the assembly line, you need continuous supply of those spare parts, raw material.
- Therefore, best location for automobile industry=established industrial region that has tradition of manufacturing such components. (e.g. we saw earlier Midlands, UK=Layland; Mercedes/Volkswagen near Ruhr Germany; Volvo Sweden.)
Without going into all details:
- This bankruptcy is filled by Detroit Municipality and not by Detroit Automobile industry
- Detroit Municipality had sold “bonds” to finance their operations (fire dept., police dept. and various municipal works, social services, healthcare, pension expenses)
- Now they don’t have the ca$h to repay money to bond-holders (need around 18 billion dollars). So, Municipality filled Bankruptcy under Chapter 9 of Bankruptcy Act
- This Chapter 9 protects financially-distressed municipalities from legal prosecution from their creditors while they negotiate a plan for arranging money / re-writing the loan conditions.
- Although Automobile industry was a factor in Detroit Bankruptcy. How?
|era||population of Detroit|
|1950s||around 18 lakh|
|present||around 7 lakh and among them, barely 280,000 people are of working age.|
- so why ^this growth and decline in population? because in the 50s, Detroit was a booming automobile industry. But later, other States of USA also offered tax benefits to Automobile giants so they started setting up plants elsewhere.
- Competition from Japanese automobiles
- + recession => auto-sales declined
- As a result: automobile and spare part factories of Detroit began to shut down and workers started moving to other cities for jobs= less workers in Detroit=less tax payers. And many of Detroit-folks barely earn ~27,000 dollars per year =you cannot extract a lot of tax out them.
- Since people left the city, many houses are vacant=less property tax.
- Thus Detroit Muni. doesn’t have lot of ‘incoming’ money
- On the other hand, outgoing money is high because of pension-healthcare to old people; unemployment=>crime rate=>more expenditure on police; vacant properties=>more fire-incidents=>more expenditure fire department and so on.
- Therefore, Detroit Muni. unable to pay back the bond-money and hence the bankruptcy.
|labor||Toyota Motor Company setup plant in Koromo.Koromo =silk industry was on decline= high unemployment= cheap labour force was available.|
|technology||innovation by reverse engineering US-technology|
|transport||Nearby Nagoya= metropolitan area= ideal for auxiliary corporate services + port for exporting cars to US and other countries of Asia.|
|government policy||Koromo’s local government provided cheap land for the factory.|
And thus, a rural silk growing area turned into a majour industrial district in automobile production.
Later, majority of Japanese automobile companies set up plants in the Tokyo-Nagoya regions. (Except Mazda in Hiroshima)
|Market||A’bad to Mumbai: developed region with lakhs of middle-class families.+proximity to ports=easy car export.|
Anyways, enough of Automobile industry, let’s move to next topic:
|physical factors||economic factors|
Located @Nagoya, Tokyo-Yokohama, Hiroshima
- Japan relies on imported iron= steel mills are @costal location => heavy marine engineering industry also @costal location = heavy machinery, boilers, engines, cable ropes and electric installations….all the raw material and spare-parts are locally available for shipbuilding.
- Auxiliary industries already developed because of automobiles.
- robots: to compensate for less number of workers
- Excellent harbours and bays for launching ships.
- Mild climates to keep water of the rivers and estuaries free from freezing.
- Great domestic as well as foreign demand for fishing boats and merchant vessels respectively.
- Availability of tidal estuaries of the Elbe, Weser, Oder and Lubec Bay
- Advantage of highly developed iron and steel industries in the country.
- Possession of technical and skilled labour.
- Patronage of technical institutions of the country.
- large domestic and foreign demands for her vessel.
Now some passing references
- Chief center of shipbuilding is Mid-Atlantic coast region.
- The area has easy access to tidal waters and availability of large quantities of steel.
- Vishakhapatnam itself has steel industry and Kolkata well connected with steel industries of Jharkhand and WB = raw material available nearby.
- flat/level coastal land available
- rich hinterland with excellent railroad connectivity for transport of labor and ancillary components
- Indigenous demand from ONGC, for offshore platforms, drilling rigs and steel jackets + from Indian Navy and Coast guards.
Other than that, not much wisdom is given on location factors for shipbuilding industry in India, just establishment years, naming-renaming, types of ships made/repaired etc.
For UPSC Civil service exam, General Studies (Mains) Paper 1:
5 marks, 100 words
- Analyze the factors reasonable for location of iron- steel industry in Chhota Nagpur region?
- What factor were considered for setting up iron and steel plant at Durgapur?
- Explain why Western India doesn’t have any major iron-steel industry.
- Proximity to mineral resources is important but not essential requirement for development of iron and steel industries. Agree / disagree? Justify your stand with suitable examples from India / Abroad.
- Discuss the role of energy source as a factor for location of steel industries.
- How does Industrial inertia affect the location of secondary industries?
- To what extent is the availability of power supply a major location factor? Why do coalfields exert a greater influence than oilfields on the industrial location?
- Assess the role played by local sources of iron ore in the development of iron and steel industry either in Europe or in USA.
- Outline the locations of iron and steel industry in any one country, and show how it has factored in the location of secondary industries.
10 marks, 200 words
- List any three major industrial regions in three different continents which are found near coalfields and explain the factors, apart from proximity to coalfields that have helped in their growth?
- Important industrial regions of the World usually found at the middle latitudes. Comment
- Using the examples of any two countries of your choice, explain the factors responsible for the establishment and development of automobile industry.
- Write a note on the distribution of Iron-Steel and heavy engineering industry in India and the factors responsible for it.
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