(a) Explain five reasons why the production of consumer goods is common in developing countries. (b) Outline five factors which influence industrial locatio...

Answer Details

(a) Five reasons why the production of consumer goods is common in developing countries

• Availability of local raw materials: developing countries have abundant agricultural and light raw materials suited to making food, drinks, soap and textiles.
• Large local market: big and growing populations create high demand for everyday consumer goods.
• Low level of capital and technology: consumer-goods (light) industries need less capital and simpler technology than heavy industries.
• Availability of cheap, unskilled labour: consumer-goods production is often labour-intensive and matches the abundant low-skilled workforce.
• Import-substitution policy: governments encourage local making of basic goods to save foreign exchange and reduce dependence on imports.

Other valid points: quick returns on investment, ready market among low-income earners.

(b) Five factors which influence industrial location

• Raw materials: weight-losing or perishable raw materials pull industries close to their source.
• Power/energy supply: reliable electricity, coal or gas is needed to run machines.
• Market: industries locate near large populations or where demand for their goods is high.
• Transport and communication: good roads, railways and ports ease movement of materials and finished goods.
• Labour supply: availability of skilled and unskilled workers at reasonable cost.

Other valid points: capital, water supply, government policy, land/site.