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  1. In terms of government policy, industries are located at regions where the government policies benefits them most. Labour intensive industries tend to be located in countries where the government is giving out tax incentives for manufacturing. For example, the Chinese government spearheaded industrial development by providing good infrastructure in the coastal areas in the form of Special Economic Zones that were optimized for labour intensive industries. On the other hand, high tech industries are prefer to set up their companies in countries where the government is actively supporting and sponsoring the value-added industry. For example, Singapore has the One-North region that caters for the high-tech industries. It has the infrastructure for high tech industries to set up their industries there.
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