a. Define location of industry
b. Explain how the following factors influence where a firm is sited:
i. raw materials
ii. market
iii. government policy
c. Outline three advantages of localization of industry
Explanation
a. Location of industry may be defined as the sitting or establishment of a firm or industry in a particular place. An industry may be established either by individuals or government, either for economic or political reasons.
bi. Cement producing industries should be located close to sources of raw materials to reduce cost of transportation. Perishable goods like fruits, palm oil industries, etc should be located near their raw materials.
bii. There should be ready market for the products of any industry to be sited in a place. Fragile goods like glass, bulky goods like cement and other perishable goods should be located near the market. Such industries located or directed towards the market are called market-oriented industries.
biii. Government can encourage the location of industries through certain policies like: direct participation in setting up of industries. Creation of industrial zones in the country, provision of infrastructures like electricity, pipe-borne water, roads and tele-communications.
c.
- It encourages development: the growth of industries leads to an increase in production of goods and services.
- Emergence of subsidiary firms: as major firms concentrate in one area, other subsidiary service firms that assist those major firms in the production of goods usually emerge.
- Generation of employment: the concentration of many industries in an area leads to the creation of many job opportunities.