Weber ModelCriticisms

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 understandin

g 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 increa

sed 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 t

o determine industrial locations?• Give examples to show that these factors ar

e more important than those mentioned by Weber.