They also require the land to be relatively flat, so that production lines can operate easily. Industry: most industrial processes require a large area of land.In general, the requirements for each type of economic activity are as follows: Terrain: whether the land is hilly or flat.This is why all urban areas are different! Physical factors Location is always a compromise between these different issues. The following factors are never used in isolation by businesses to decide where to locate. Factors affecting the location of urban economic activity The rest of this page focuses on the reasons why economic activity is found in different parts of urban areas. Industrial: the manufacturing, processing, transport and storage of goods.įor detailed information about where these activities are found in urban areas, check the page on this site ‘Urban land use patterns’.Most sources include retail as a part of commercial activity. Note: this is a narrow definition of commercial activity for the purposes of this page only. It includes legal services, banking, logistics and technology support (e.g. Commercial: the provision of services to the general public and businesses, usually taking place in offices.This most commonly takes place in the city centre, or ‘Central Business District’, but can occur anywhere in the city and increasingly online Retail: the sale of individual products to individual customers.Therefore, for this page, economic activity is split into retail, commercial and industrial. In the urban economy, there is usually no primary industry. Quaternary: innovation, research and development of new products and services. This includes shops, entertainment and intellectual services such as legal and financial. Tertiary: the provision of services to customers.This includes the transport and storage of materials. Secondary: manufacturing and processing these materials into products that can be used.Primary: retrieving raw materials from the environment including, fishing, forestry, mining and farming.Across the whole economy, we usually separate it into primary, secondary, tertiary and quaternary: Urban economic activities: Learning activitiesĮconomic activities can be anything that makes money.Proximity to a central business district (CBD).Factors affecting the location of urban economic activity.
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