Factors of development and location of production and their classification

Factor — a set of arguments, reasons for choosing the location of objects, as well as the formation of territorial entities (centers, points, agglomerations, etc.)

Most scientists group individual factors, for example

(according to M.I. Fashchevsky):

1. Natural-geographical

2. Demographic (labor resource, workforce, etc.)

3. Socio-economic

4. Technical-economic

5. Geopolitical

1. Factors affecting production costs (raw materials, labor, transport, tax system, development of production and social infrastructure);

2. Market (demand for products, opportunities for market expansion);

3. Subjective.

- savings on public services (security, judiciary, etc.) per capita;

- a larger internal market that stimulates economic growth;

- reduction of the impacts of economic crises and downturns due to mutual support from various specialized regions;

- greater opportunities for equalizing incomes and expenditures of local budgets.

Threats for large countries: the cumbersome nature of the regional management system, difficulties in implementing systemic reforms.

Ethnic and linguistic diversity complicates management processes in the state, can lead to conflicts that negatively affect economic development

At the core of most changes in the influence of factors lies scientific and technological progress.

1. Change in the influence of the transport factor: from the 1970s to the mid-2000s, the cost of transportation by rail and sea fell by 50%, by road transport by 40%, and the cost of air transport now accounts for 6% of prices from 1955. Transportation costs for electricity have also significantly decreased.

2. Increase in the influence of the environmental factor. This factor affects through restrictions on the locations of enterprises, increasing production costs (due to the need to pay environmental fees and rent payments).

Consideration of the environmental factor is carried out in the following directions:

- restrictions on the development of the economy in certain areas;

- reduction of the negative impact of certain enterprises on the environment;

- utilization of the ability of ecosystems for self-cleaning;

- development of nature conservation integration (combination) of enterprises.

3. Coastal location

The rise in sea levels and increased storms will occur in many coastal areas of the USA, leading to a higher risk of soil erosion and flooding, especially along the Atlantic coast of the country and parts of Alaska. It is quite likely that the energy and transport infrastructure of coastal areas will be affected.