Geographical industrial inertia is a stage at which an
industry
Industry may refer to:
Economics
* Industry (economics), a generally categorized branch of economic activity
* Industry (manufacturing), a specific branch of economic activity, typically in factories with machinery
* The wider industrial sector ...
prefers to run in its former location although the main alluring factors are gone. For example, the
raw material
A raw material, also known as a feedstock, unprocessed material, or primary commodity, is a basic material that is used to produce goods, finished goods, energy, or intermediate materials/Intermediate goods that are feedstock for future finished ...
source is depleted or an
energy crisis
An energy crisis or energy shortage is any significant Bottleneck (production), bottleneck in the supply of energy resources to an economy. In literature, it often refers to one of the energy sources used at a certain time and place, in particu ...
has emerged.
An industry may still like to stay in its former position because of its
fixed cost (land capital etc.). A firm may also decide to stay in its former location if:
# there is linkage with other activities of the area
# it is in a favorable location for
transportation
Transport (in British English) or transportation (in American English) is the intentional Motion, movement of humans, animals, and cargo, goods from one location to another. Mode of transport, Modes of transport include aviation, air, land tr ...
# there is a
skilled labour
Skill is a measure of the amount of worker's expertise, specialization, wages, and supervisory capacity. Skilled workers are generally more trained, higher paid, and have more responsibilities than unskilled workers.
Skilled workers have long had ...
force
See also
*
Diseconomies of scale
In microeconomics, diseconomies of scale are the cost disadvantages that economic actors accrue due to an increase in organizational size or in output, resulting in production of Product (business), goods and Service (economics), services at incre ...
References
* ''Modern Dictionary of Geography'', Michael Witherick Visiting Fellow in Geography University of Southampton, Simon Ross Head of Geography Queen's College Taunton, John Small Emeritus Professor of Geography University of Southampton
{{DEFAULTSORT:Industrial Inertia
Economic geography
Cognitive inertia