A resource-oriented industry, such as a pulp and paper mill, needs to be near its primary source material as the timber is bulky and more expensive to transport than the finished product. A market-oriented industry needs to be close to its final consumer as the finished product results in an increase in mass such as car manufacturing. The tendency for suppliers and customers to locate near each other is called agglomeration. Labour - a pool of skilled, qualified workers can be an important factor, as can an absence of such workers. Labour costs has become a major issue in recent years as companies find ways to cut costs.
Agglomeration is also related to the availability of labour.
A mining town that employs mostly men may be attractive to a business which is looking for female workers. Capital - refers to concrete items such as machinery and intangibles such as financial and legal services. Sometimes there are barriers to doing business in a country or between countries. Businesses that are highly automated are often capital intensive and do not require a large labour pool. Government Policy - governments pass laws and policies that are beneficial and attract business, as well as.