Localization of industry is encouraged because of improvements in infrastructure. When an area has good infrastructure, such as reliable transportation, communication networks, and access to utilities like water and electricity, it becomes more attractive to businesses looking to set up operations. This is because good infrastructure can lower the costs of doing business, make it easier to transport goods and services, and increase the speed and efficiency of communication. Additionally, a well-developed local infrastructure can also improve the quality of life for workers in the area, making it easier for businesses to attract and retain skilled labor. As a result, governments and other organizations often invest in infrastructure improvements as a way to encourage the localization of industry in a particular region.