What is Location Theory? The Placement of Economic Activities

Описание: Hello! Today, I will talk about an important topic in economic geography: Location Theory. This theory examines where and why economic activities are geographically located. Starting with Johann Heinrich Von Thünen's model in 1826, this theory has evolved with contributions from Alfred Weber and other economists.

Location Theory explains how firms choose the most suitable locations to maximize their profits and how individuals select locations to maximize their benefits. This theory helps us understand the geographical distribution of agriculture, industry, and service sectors and holds a significant place in fields like economic geography, regional science, and spatial economics.