Weber's Theory of Industrial Location (Least Cost theory) - Simplest Explanation

The video explores Alfred Weber's least cost theory, which addresses optimal factory locations for efficient production. It highlights three key factors: transportation, labor, and agglomeration. The theory distinguishes between bulk reducing and bulk gaining products, suggesting factories be closer to raw materials or markets accordingly. Examples include potato crisps and beer. Despite its insights, the theory has limitations due to assumptions like equal land cost and single market focus.

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