Q5 of 19 Page 178

Answer in 100 words:

What is the role of capital in the location of industries?

Capital is also a factor to determine the location of industry. Money is necessary to buy the equipment, machinery, land, labour, raw material or any other input used in an industry. Some industries require huge investment like heavy industries while others require small amount of investment. Capital intensive industries develop where formation and acquisition of capital is not difficult and the places which attracts investment of the people, organizations and companies.


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