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Solution:
Sargant Florence Theory:
Prof. Sargant Florence evolved an inductive theory for explaining the causes of industrial location.
He found that the problems of industrial location are more related to the distribution of the occupied the population of the country than its geographical areas.
His theory of location is based on two new concepts -location factor and co-efficient of localization.
(a) Location Factor:
It is an index of the degree of concentration of an industry in a particular region.
This index is calculated by taking the percentage of all workers in a particular industry found in a certain region and dividing it by the proportion in that particular region of the total industrial workers in the country.
Where an industry is evenly distributed throughout the. country, the location factor for each region would be unity. If the industry is not evenly distributed, the location factor will be either above unity or below unity.
Regions showing location factors above unity or below unity would indicate that such regions have a higher share or a lower share of the industry than what should have been the case.
(b) Coefficient of Localization:
It indicates the tendency of a particular industry to concentrate or disperse anywhere in the country.
It can be obtained for the industry by dividing the positive or negative deviations of the regional the proportion of workers in the particular industry from the corresponding regional the proportion of workers in all industries by 100.
Industries that are concentrated in certain regions will have a high co-efficient of localization, and industries that are dispersed in different regions will have a low co-efficient of location.
By calculating the coefficients of locations for all industries, they can be divided into the categories of the high, medium, and low co-efficient industries.
Accordingly, the locational significance of an industry can be shown and the the problem of investigation can be made easier.
A low coefficient of localization for a particular industry indicates that it can easily thrive in various regions.