5. Non-Geographical Factors

The non-geographical factors include economic, political, historical and social factors. To a great extent, these factors influence our modern industries. Following are some of the important non-geographical factors.

Huge capital is required for establishing and running industries.

In most cases, industries start with not enough capital in hand. So, the investors seek a loan to start the industries. Thus, the organizational set-up (like banks) which provides loans and insurance is required.

 

 

The business environment in a country depends on the policies of the Government. Hence Government policies are another influential factor that determines the location of the industry. The Government may set certain restrictions in the allocation of land for industries in order to reduce regional disparities, check excessive pollution and avoid the excessive clustering of industries in big cities. So, the policies also affect the industrial locations.