Bangalore - Case Study

Bangalore

Industrial location case study LEDC

What is Bangalore?

• Bangalore has become the location of 'offshore' head offices
• This means all the MNCs who are not Indian owned but have set up big offices there
• Has a population of over 6 million

What is important in location of industry and MNCs?

1. Cheaper production and employment costs in LEDCs and NICs like India
2. Growth of markets outside MEDCs - India has 1.2 billion people and it's growing. Europe is tiny in comparison on 500 million to buy MNCs products
3. Growth of skilled workers. Lots of people in NICs are highly educated. Due to its colonial past most of the graduates can speak English which is perfect for the MNCs in UK and America.
4. Growth of technology and Internet. Businesses can now locate new places outside of MEDCs due to the rise of Internet connections.

Why is it located here?

1. Infrastructure - The indian government built a satellite earth station for high speed communications. Suddenly, engineers in Bangalore can communicate instataneously with US colleagues and transmit huge computor files within seconds. Over 1000 MNCs have large offices and research centres here.
2. Government Investment - In 1950s the government made Bangalore its 'CAPITAL OF THE FUTURE' 
3. Education and training - It became a education hub for engineering and computing.  Thousands of students study these subjects and are employed by the MNCs once they graduate