It is useful to know for which reasons the manufacturing industries or enterprises are actually located. For the purpose, we should take more considerations to select inquiry items of locational conditions on the questionnaire than to statistical technique of gathering data, or else the results will have little significance. Hence, the basic concept of locational condition should be clearly defined.
The two terms, locational condition and location factor, seem to be sometimes confusedly used. The location factor originates in the conditions of the area, however, it matters not the condition itself but the effects or forces of the condition. In order to understand the characteristics of the locational condition, we should understand the meaning of the location factor, and to know the location factor we should understand the theory of location which is founded on some selected location factors.
For a geographical study we need to know what kinds of conditions effect on the location of manufacturing industries and enterprises, or else we shall be satisfied to simply arrange various items of conditions one by one. From this view-point the author has examined the location theories of various types, the characteristics of location factors and its effects, and got to design the following criteria of sorting and setting location factors. This criteria is to settle the standard of classifying a number of locational conditions.
1. The character of locational advantages.
a. cost advantages
b. marketing advantages
i. monetary income
ii. psychic income
2. The character of location forces.
a. balance of tractions: proximity
b. alternatives: bindingly
3. The scope of effects.
a. spatial
b. spot
4. The community of effects.
a. common advantages
b. individual (personal)
5. The continuity of effects.
a. one time, temporary
b. continuous: constant
: changeable
6. The computability of effects.
a. computable
b. conjecturable
It is difficult to ascertain the cause of localization by the appearance of geographical distribution pattern. For instance, we know that the industries located in the consuming centre are not always consumer-oriented but oriented owing to various other location factors. One condition of location has an effect in an area only when balanced by other conditions of location, and although a condition is good enough, it is of little significance in the area at least, if other conditions are unfavourable. Furthermore, conditions are so much differently estimated by various industries or enterprises that a study of the condition of the specific industry's location loses meaning if we leave out the characteristics of the manufacturing enterprise or the specific area.

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Economic Region has the two important aspects as the space of location and that of market. In order to analyze economic region, the author thinks it necessary to unify these two aspects and to introduce the concept of space of equilibrium in the balance of supply and demand.
For the purpose of studying the space of equilibium, Economic Base Theory has been used. But now the theory is criticized in some points. They are as follows;
1) The method to calculate the basic activity is too much simple.
2) Of the two activities, basic and non-basic, we can not conclude which activity is more important in the development of a region.
3) Base-Ratio is changeable according as the time or space changes. For instance, if we treat the nodal point only, Base-Ratio will be high, but if we consider the total service area including the nodal point, it will be lower than in the fomer case.
4) In the case of linkage industry, it is difficult to distinguish basic actvity from nonbasic one.
5) As the regional multiplier, Basic-Ratio is too much simple. In order to plan the future developmant of a region, we must analyze the relationship between industries in detail.
W. Isard and L. Moses presented better method than Economic Base Theory. That is Regional Input Output Analysis. In adoptation of this theory, however, we need exhaustive time and expence to collect the materials. For this reason, we can hardly adopt this theory in reality. The auther thinks it better to take more useful method of Regional Commodity Balances Table.
In Japan, National Input Output Table is available. On the basis of the input coefficients of this table, the author calculated the commodity balances of sixteen prefectures in Chubu, Kinki, and Kyushu Districts, and tested the regional character of prefecture seen from the space of equilibium.
Although there are many differences between prefectures in their extention industrial structure or productivity, some eighty per cent of the commodity flow in both supply and demand is completed inside of the prefecture itself. As the result obtained in this article, the auther concludes, profecture has its own substantial value as region, though contemporary prefecture is thought as only political unit.

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The main purpose of the paper is to show how employed labor force of various industries is related to city size and to explain the nature of city's economic activity. In so far as employment is a suitable measure of the industrial location, this study will reveal the relative importance of the location of industries for the urban economic structure.
Objectives treated are about 400 cities with population of more than 30 thousands in the non-metropolitan regions of Japan, and 1955 Census of Population, 1956 Census of Manufacturing and 1957 Census of Establishment are examined, and the labor force ratio by industries in each city grouped by their size is calculated. Five lines in each figure show 10th, 25th, 50th, 75th, and 90th percentile of distribution respectively.
Three groups of industries are distinguished. The first group includes all service industries, contruction and market-oriented manufacturing industries. Percentage of labor force in these industries increase in higher grade of city size. The second one consists of agriculture and other resource extractive industries, relative numbers engaged in such industries falls regularly when the city becomes larger. The third group includes other manufacturing industries, in this case no clear relations are found between city size and location of economic activities.
The general trends observed are as follows.
1) Small cities tend to be much more specialized but much less diversified in their economic activities than larger cities. The fact that variation of industrial structures is small in large cities shows that the latter tend to be self-sufficient and to have well balanced economy.
2) The ratio of laborers of service industries has a very close connection with the urban population size. The strong correlation of city size with number of laborers engaged in the first group of industries will suggest the existence of central place hierarchical system.
3) Viewed from commerce and trade, small cities serve generally their narrow, local markets, but large cities serve not only their own markets but supply goods and services to small regional centers. Viewed from production, small cities as well as large ones display manufacturing activities to the nation-wide market through their functions of specialised industries.
4) Location of manufacturing industries in cities of different sizes are limited by the extent of market area and the amount of demands. As a result the number of employment in each manufacturing industrie is limited by city size, strictly in the so-called “ubiquitous” industries and weakly in the “sporadic” ones.
5) Index number of urbanization is relatively low in the industry of raw material production or of simple process, whereas it is considerably high in that of final products or of already processed materials. The phenomena seems to be resulted from the fact that originally market-oriented character of industry is more clearly revealed of the latter which are restricted less by the uneven distribution of natural resources.

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