Industrial Investment

Industrial Investment

terminology, and originally referred to the extractive industries and manufacturing industries, but today it also includes the provision of any service or product in return for a profit, such as the banking industry .Originally, the term industry is synonymous with the secondary economic sector that deals with complex economic activities such as converting raw materials into useful products and services. Industry is the total technically productive projects in any of the fields, and the name of this field is often appended to the term industry (conversion industries, motors industry, textile industries, food industries ).The industry began its current form during the decades of 1800 AD, according to the technical progress that began in that era and continued development to the present era .

Industrial Investment

Industrial Progress:

Industrial progress is closely related to the business cycle and its impact in the business cycle is preceded by the impact of the services sector. Thus, industrial data is sometimes a value that precedes service indicators, giving an indication of the true place of the economy in the business cycle, and from it it is possible to predict changes in GDP in a direction rather than a value. industry factors

The factors for establishing the industry vary as follows :

-Natural factors

Geographical location :

-Factories are sometimes built far from residential areas, taking into account that they are close to the sources of raw materials

Climatic conditions :

The climatic conditions must be suitable for the types of industries; Like the spinning and weaving industry, which is concentrated in the delta, due to the presence of a humid climate suitable for agriculture. Wind directions must also be taken into account so that fumes do not head towards residential areas

Surface properties :

Factories usually require flat ground

Raw factors and energy sources :

Raw materials

The raw materials needed for the industry vary, including :

Agricultural raw materials such as corn, wheat, cotton, flax, sugar cane and beets .

Animal raw materials such as leather, milk and meat .

Mineral raw materials such as iron, manganese and phosphate .

Rock raw materials extracted from various rocks such as marble .

Energy sources:

Various industries need energy sources to run factories, the most important of which are coal, petroleum derivatives, and natural gas. There are also new sources of energy such as hydroelectric power, and sound nuclear energy, which is clean energy that works to protect the environment from pollution .

Human factors :

Manpower technical expertise

The success of the industry can be determined by the availability of manpower, trained technical skills, and the selection of the factory location

Capital :

Capital is essential in establishing the industry and improving its quality

Transportation :

Transportation and transportation are important factors in the industry. The provision of transportation provides an opportunity to transport workers, raw materials and products at cheap prices

Market :

It is represented in the domestic market, which means the local population’s demand for industrial products. As for the foreign market, it means the requests of other countries for industrial products in the country. Such as Arab countries and foreign countries

Raw materials are raw materials that exist in nature in their natural form and are often useless or of little benefit that cannot be compared to their usefulness after industry .

These materials are divided into :

( a) Vegetable raw materials: such as wood, cotton, rubber, sugar cane, wheat, and so on .

( b) Animal raw materials: such as leather, wool, milk, and meat .

( c) Mineral raw materials: such as iron, copper, bauxite , gold, and so on .

Some industries can be raw materials for other, more developed industries, which are what are called semi-finished materials such as oils, textile threads, cast iron blocks, oil derivatives resulting from refining, and so on .

The availability of raw materials, cheap prices, diversity, and ease of exploitation played a major role in the establishment and success of the industry

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