Theory question 108
IndustrialisationSection B (answer four questions only from this section)
Explain each of the following: (a) Indigenisation policy (b) Localization of industry (c) Economies of scale (d) National budget.
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(a) Indigenisation policy: a deliberate government policy of transferring ownership and control of businesses from foreigners to citizens, e.g. by reserving some businesses or a share of equity for indigenes.
(b) Localization of industry: the concentration of firms in the same industry in a particular area, e.g. because of raw materials, markets or power supply.
(c) Economies of scale: the cost advantages (fall in average cost) a firm enjoys as it grows. Internal economies come from the firm's own size (technical, managerial, marketing, financial, risk-bearing); external economies come from the growth of the industry or area.
(d) National budget: a statement of the government's estimated revenue and planned expenditure for a coming period, usually one year; it may be balanced, surplus or deficit.
Each part needs a clear definition plus an example or brief detail.