Solution:

Critical Appraisal of Weber’s Theory:

• Weber’s theory of industrial location has been criticized on the following grounds

  (i)

• The theory is based on unconvincing, oversimplified, and impractical assumptions.

• Firstly, the assumption that there are fixed points of consumption does not accord well with the market conditions in a competitive structure.

• Austin, Robinson points out that, in reality, there is a widespread market served by competing producers.

• Consuming populations are usually scattered over the whole country and the consuming centers may be shifting with a shift in the industrial population.

• Secondly, his assumption about transport costs is not realistic. He based the transport cost on weight and distance.

• However, in reality, the transport costs vary according to the type of transportation, the quality of goods to be transported, the topography and character of the region, etc.

• Thirdly, the fixed centers of cheap labor are a myth today. Labor has become considerably mobile and attracted towards the location of industries rather than the industries going towards cheap labor.

• Moreover, the second assumption about labor: centers that each center has an unlimited supply of labor is even more objectionable because an unlimited supply of labor cannot be envisaged at any center.

  (ii)

• Weber takes into consideration only two factors viz. transport and labor, and completely ignores so many other factors of location such as availability of fuel and power, water supply, climate, historical and political factors, taxation policy etc. which also influence, to a great extent, the selection of the location.

  (iii)

• The classification of material into ubiquitous-and fixed material is considered artificially by Austin Robinson.

• He points out that, in actual practice, materials are drawn from a large number of alternative fixed points and, therefore, the classification of materials into obliquities and fixed materials appears to be artificial.

  (iv)

• Weber’s approach, as pointed out by S.R. Dennison is overburdened with technical considerations.

• Costs and prices must form the basis of any such theory is not given proper treatment and the theory is full of technical coefficients.

• “The investigations of an economist ought to be based mainly on the considerations of costs and prices”.

• Weber’s analysis ignores all factors of costs and prices and this is the most important criticism of his de4uctive theory.

• Despite the above criticism, Weber’s theory of location is an important a milestone in economic history; it is the first scientific attempt that provided the systematic explanation for a complicated problem of the theory of location.

• It should therefore be not discarded,, too; it needs modification by giving up the unrealistic assumptions and by making it more comprehensive.