Explain the economic forces that are likely to determine the location decisions of manufacturing firms (34) marks Document Preview: © The College of Estate Management 2008 Paper 0342V2-0Land use and...

© The College of Estate Management 2008 Paper 0342V2-0 Land use and location Contents 1. Transport costs and location 1.1 Introduction 1.2 Rent-earning capacity and transport costs 1.3 Rent-earning capacity and land use 1.4 Conclusions 2. Factors determining urban land use and land values 2.1 General accessibility 2.2 Special accessibility 2.3 Other influences on land use 2.4 Institutional factors 3. Residential location and urban structure 3.1 Concentric zone theory 3.2 Cost of friction hypothesis 3.3 Sector theory 3.4 Multiple nuclei theory 3.5 Sector-zone theory 4. The location of industry 4.1 Introduction 4.2 The importance of transport costs 4.3 Other cost factors affecting location 4.4 Acquired advantages: agglomeration economies 4.5 Revenue considerations 4.6 Relative advantages and locations 4.7 Location: design or accident? 4.8 Problems of concentration of industry and population 5. ConclusionLand use and location Paper 0342 Page 3 1 Transport costs and location 1.1 Introduction In the market economy, land values and land use are determined simultaneously. That use which can outbid all the others will secure a given piece of land. Thus in the long run, within the geographical and institutional framework and subject to the imperfections of the real property market, land will move to its most profitable use. But land is peculiar in that, as it cannot be transported, it has to be used where it lies. This means that plots of land differ in location. Consequently the value of a plot of urban land is determined by the competing demands for its particular location and the supply of other plots having similar or nearly similar characteristics. The supply of sites is very limited in the centre of an urban area, but rises at an increasing rate as we move outwards. But, with some fixity of supply, it is demand which will tend to dominate price. Our initial task, therefore, is to examine what determines the...