Classification of Industries The general difference between one industry and other measured according to the nature of the product, number of employees, value of the capital involved, quality of employees, wage rate, value addition of the product and nature of raw materials. Numerous classifications are available, each quite different from another. One emphasized on raw materials, another on product and even on transport cost. The Weberian model introduced an industrial classification based on raw materials. According to his model, industries may be sub-divided into following categories – I. The industries based on ubiquitous raw material: This type of industries use raw materials available everywhere, e.g. air, water, soil, etc. II. The industries based on localized raw material: These industries use raw materials, confined within some selected region, e.g. coal, petroleum, iron ore, etc. These industries are again sub-divided, according to weight loss ratio or material
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