The following are all factors determining the location of industry except

Assessment: JAMB UTME - Economics - 2025 Subject: Economics

Question 1 Report

The following are all factors determining the location of industry except

 

 

Answer Details

The location of an industry is determined by several factors that influence where it is most efficient and profitable to set up production. The classical factors include:

  • Availability of labour - industries locate where there is an adequate supply of skilled or unskilled workers as required.
  • Proximity to market - industries that produce bulky, perishable, or fragile finished goods tend to locate near their consumers to reduce transport costs.
  • Nearness to raw materials - industries that use heavy or perishable raw materials locate near the source to minimise input transport costs (weight-losing industries).

Other recognised location factors include availability of power and water, transport infrastructure, government policy, and climate.

The minimum wages rate is not a classical factor determining industrial location. Minimum wage is a government-imposed floor on worker pay and applies uniformly across all locations within a country. While the general cost of labour may influence location decisions, the statutory minimum wage rate does not vary by location in a way that would determine where an industry is sited. It is a labour regulation, not a locational factor.

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