The Philippines have used these approaches to encourage regional development. Use at least one theory to answer the following questions in relation the establishment of a tuna canning factory in an area: what factors will influence the location of a tuna canning factory in the community? What are the impacts (positive & negative) to the area and nearby towns? How can these impacts be mitigated (for negative impacts) and enhanced (for positive impacts)?
The central idea of the growth poles theory is that economic development, or growth, is not uniform over an entire region, but instead takes place around a specific pole (or cluster). This pole is often characterized by core (key) industries around which linked industries develop, mainly through direct and indirect effects.
Core industries can involve a wide variety of sectors such as automotive, aeronautical, agribusiness, electronics, steel, petrochemical, etc. Direct effects imply the core industry purchasing goods and services from its suppliers (upstream linked industries), or providing goods and services to its customers (downstream linked industries). Indirect effects can involve the demand for goods and services by people employed by the core and linked industries supporting the development and expansion of economic activities such as retail.
In this situation of having a tuna canning factory in the community, finding the right location is considered through a number of factors with maximizing profits and minimizing costs as the primary goals. First of is the cost minimization. Which area should they consider as the easiest and fastest way to harvest and acquire their tuna supply? It might be near a fishing port or a harvesting facility where the cost of transport to their factory is at a minimal. The place could also be at a convenience to their customers and sub sellers so they could acquire the finished products at ease.
Second is the maximizing of profit.A nearby residential area to the factory could mean an investment opportunity for wholesalers and retailers that can purchase the tuna products at a lesser cost and sell them to the mini groceries and sari-sari stores which are the main customers in the area. This could also lead to more commercial stores and establishments that will sell these tuna products.
Another factor that can be considered are the possible future development of an area. The expansion of the core industry implies the expansion of output, employment, related investments, as well as new technologies and new industrial sectors. This is sort of a stimuli that will have other industries to sort of propel in growth with the tuna canning factory as the propulsive pole. With the tuna factory as the core industry, the linked industry could be themed on the materials that the canning factory use such as a can manufacturing factory. The development of these industries lead to the growth of population in the area as job opportunities and employment attract the people in the surrounding communities, and later on evolve into a community of their own, housing most of the workers in these factories.
If there is a continuous demand in the market, a linked industry can also be developed nearby with a symbiotic relationship to the core industry. This secondary industry can also produce its own co-benefactors which can also provide business and job opportunities to the surrounding population, in producing and retailing tuna products.
The negative effect as a result of these developments of economic activity is the possible congestion of population in the surrounding area of the industries and in effect can also cause traffic congestion in the major roads going to the business center.
To mitigate this issue, proper or wider road networks should be constructed to cater the transportation.