An industry whose location is not influenced strongly by access either to materials or markets, and which can therefore operate within a very wide range of locations. Any form of ‘direct line’ business, operated almost entirely through telephone and fax lines, would be an example, also liberated from locational constraints by footloose capital.
Footloose industry
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Footloose industry is a general term for an industry that can be placed and located at any location without effect from factors such as resources or transport.
These industries often have spatially fixed costs, which means that the costs of the products do not change despite where the product is assembled. Diamonds and computer chips are some examples of footloose industries.
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Footlose industries do not have any specific locatory factors and can situate anywhere. Their materials and sources used for products are often light and so the necessity to locate near a transport link is eliminated. Footloose industries refers to TNC's who employ people in foreign countries at a cheaper rate, than they would in their host countries.
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