These scenarios only refer to transportation costs. They do not adequately account for variations over time. For example, when relative labor costs decline, or when land rent goes down, an industry can sustain an increase in transportation costs - this is referred to as the substitution principle. Discuss one other variable not mentioned by Weber that would affect the location of a factory.

Weber has planned to move the factory to a new location. The new location will increase the cost of transportation. There are many other factors which Weber should consider before deciding to go for a relocating the factory. Weber should consider availability of raw material, he should also look for labor wages and availability of sufficient labor and other basic resources for smooth production process.

suchetasVT suchetasVT · Answer 2 · 2022-03-26T07:29:03+01:00

Labor wages and availability of resources is the one of the major factors should be considered before selecting the location of a factory.

What are the factors affecting the location of a factory?

Availability of Raw Material
Transport Facilities
Market location
Labor Availability
Fuel and Power availability
Availability of Water
Climatic Conditions
Financial and Other Aids

Weber should consider availability of raw material, he should also look for labor wages and availability of sufficient labor and other basic resources for smooth production process.

Hence, Weber should consider Labor wages and availability of resources as it would affect the location of the factory.

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