(a) Distinguish between location of industries and localization of industries [5 marks] (b) Describe any three advantages and any two disadvantages of locat...

Assessment: WAEC SSCE - Economics - 2010 (Essay) Subject: Economics

Question 1 Report

(a) Distinguish between location of industries and localization of industries [5 marks] 
(b) Describe any three advantages and any two disadvantages of locating industries in rural areas [15 marks] 

Answer Details

(a) Location versus localisation of industries. Location of industry refers to the particular place or site where a single industry or firm is established, together with the factors (nearness to raw materials, market, labour, power, transport) that decide the choice of that site. Localisation of industry refers to the concentration or clustering of many firms of the same industry in one particular area. In short, location deals with where one industry sites itself, while localisation deals with many similar industries grouping together in the same district.

(b) Locating industries in rural areas.

Three advantages:

  • Cheap and available land. Land in rural areas is plentiful and cheaper, so factories can be built and expanded at lower cost.
  • Cheap labour and nearness to raw materials. Rural labour is often cheaper, and agro-based industries can be sited close to their farm raw materials, cutting transport costs.
  • Reduced congestion and pollution, and more even development. Siting industry in rural areas relieves urban overcrowding and helps spread development, reducing rural-urban migration.

Two disadvantages:

  • Poor infrastructure. Rural areas often lack good roads, electricity, water and communication, which raises costs and hampers production.
  • Shortage of skilled labour and small local market. Skilled workers prefer towns, and the low rural population and income mean a small local market for the output.

Examination takeaway: keep the distinction sharp, one firm's site (location) against the clustering of many similar firms (localisation), and back each rural advantage or disadvantage with a short reason.

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