History of packers and movers pune firm
The
firm has a history and this history is likely to have an influence on the
locational outcome of the process. This locational outcome is therefore a
conditional one. The specific nature of these conditional effects is important
for any theory of firm relocation. Another way to look at this is to separate
the relocation packers and movers pune process in to two sequential steps: firm the decision to move
and second conditional upon a move the decision to relocate to another
location. A similar distinction is between push and pull factors of migration.
Location theory focuses on the optimal locational choice which is about
locational factors determining the attractively of a site for firm location or
pull factors. Relocation theory also takes in to account the first step the
push out of the present location. In this section we will emphasis both
elements of relocation. We follow the classification in three types of location
theories given above.
The
neo- classical approach which is derived from standard classical economic
theory focuses on cost- minimizing or profit- maximizing theories. General
principles of the classical location theory which goes back to Adam Smith movers and packers pune are
given in Isard 1956. In Weber’s approach 1929 the transportation costs of
industry inputs and outputs determine a least transportation- cost surface.
Other location factors such as labor or external economies determine similar
least cost surfaces.
By aggregating the cost surfaces of all location factors a
total- cost surface is derived. In a similar vein a spatial revenue surface may
be calculated. The firm is able to make a profit in any location where total
revenues exceed total costs. By subtracting the total cost surface from the
revenue surface the total area is divided in to profitable and unprofitable
areas. In this regard the concept of the spatial margins to profitability for a
firm may be defined Rawstron 1985; Taylor 1970 Smith, 1966, 1971; McDermott
1973. These margins enclose the spatial area within which the firm is able to
make a profit.
In
an equilibrium situation the optimal location for the firm is fixed and
relocation is not necessary. However both the firm and the environment may
change over time which may be denoted as firm internal and external factors.
Factors external to the firm are for instance changing factor prices or
changing external effects e.g congestion. These will lead to a changing space
of the cost- and revenue surfaces and hence of the spatital margins to
profitability of the firm.
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