Final answer:
Locational disadvantage refers to the drawbacks a location may have due to its geographical position, impacting the mobility of resources and the effects of externalities. Central Place Theory emphasizes the importance of situation advantages in less naturally advantaged regions. Industries and firms weigh multiple factors, including location constraints that influence operational efficiency and workforce wages.
Step-by-step explanation:
The term locational disadvantage refers to the challenges or drawbacks faced by a geographical area due to its position relative to other locations. This could be due to the inability of resources, such as labor, capital, and entrepreneurs, to easily move to more favorable markets where they could be more productive or profitable. Additionally, locational disadvantage can stem from externalities, which are unintended side-effects that can either be positive or negative.
In the concept of Central Place Theory, location is crucial because regions without natural site advantages will rely more heavily on situation advantages. For example, cities on flatlands like Kansas developed in a geometric pattern because transportation was less efficient, and the friction of distance greatly affected accessibility and economic activity. The situation advantage becomes a pivotal element in the growth of cities that are centrally located compared to peripheries, which affects their overall development and competitive edge.
The principle of comparative advantage influences the location of industries, suggesting that areas should focus on what they can produce most efficiently and import goods that they cannot produce effectively. Finally, firms looking to establish new factories consider a multitude of factors, including labor costs, proximity to suppliers and customers, transportation quality, government competence, and even environmental regulations. Significant location constraints can lead to higher wages for workers in industries that cannot move to seek lower wages due to their specific location needs, such as dockworkers at major ports.