Abstract:
The establishment of industries has, in the last decade, increasingly excited the interest of economists, planners and entrepreneurs. The result of this is that the existing economic and business economic theories need to be supplemented with regard to the problems and principles of the establishment of industries. This thesis offers a functional method which fully incorporates the business economics characteristics of a business. Because matters regarding the establishment of industries cover a wide field, this thesis will only deal with the essential principles and the interpretation thereof. This thesis must be seen as an investigation of the principles of industry establishment, and this leads to some conclusions, the most important of which is that for every business with a given turnover, there is probably at a certain time one ideal establishment place, where the total cost of manufacture and distribution is the lowest. This thesis is based on two axioms, namely that every business is unique with regard to the characteristics of its product, manufacturing processes, marketing and distribution methods, and that manufacturing and distribution costs vary from area to area. For the determining of the exact establishment place of a business, it must be regarded as essential that both axioms are integrated into one business economics concept. Attention is also given to the measures which are applied by the government to improve spatial arrangements. Exact industrial establishment is aimed at maximising the profitability and improving the competitiveness which emphasises the vital role of the choice of the exact industrial establishment position.
