Theory question 106
Industrialisation(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.
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(a) Location of industry is the choice of the place where a firm sets up its factory/business.
(b)(i) Raw materials: firms using bulky or weight-losing raw materials locate near them to cut transport costs (e.g. cement near limestone).
(ii) Market: firms making bulky, fragile or perishable goods locate near consumers (e.g. bakeries, soft drinks).
(iii) Government policy: incentives (tax holidays, industrial estates) or restrictions direct firms to particular areas for balanced development or security.
(c) Any three: pool of skilled labour; shared infrastructure and services; ancillary/supporting industries develop; specialised institutions (banks, training centres); reputation of the area; easier exchange of information; lower costs (external economies).
Localization means concentration of one industry in an area.