Question

1. What is the difference between resource-oriented firms and market-oriented firms? Where will they locate?

Answer 1

The Difference between Resource oriented firm and Market oriented firm.

Resource Oriented Firm

1. These are the firms which decides their industrial location based upon the availability of the resources at the nearest location and at the accessible distance.

2. These industries are located near the resource location that is where the resources used as input in the industry are originated there.

3. These are generally heavy industries, like steel plant in which high weighted raw material is used and also raw material in these industry show weight loss after use such as Coal. So to reduce cost of transportation these industries decide their location.

4. These are the industries in which vonsumer preferences rarely matter. Generally these produces intermediate goods which are consumed by the producer of other products

5. Ex. Steel Industry,

Market Oriented Firm

​​​​​​1. These are the Firms which decide their industrial location vase upon the availability of market in that area than resources availability.

2. These industries uses light weight raw material which results into less transportation cost.

3. It doesn't results into weight loss of raw material after production.

4. Consumer oriented products :

Consumer preferences and taste matters here, these firm remain more concerned about the trend, fashion, preferences of product. So according to that firms adapt their product.

5. Final good production :

These firms produce final products which are directly consumed by the consumer. Consumer preference matter here.

6. Ex. Textile industry, Electronics appliances industry