(a) Distinguish between: (i) a firm and an industry. (ii)location and localization of industry. (b) Describe any four factors which influence the location o...

Answer Details

(a) Distinctions.

(i) Firm versus industry. A firm is a single business unit that produces a good or service under one ownership and control. An industry is the group of all firms producing the same or similar products. Thus one bakery is a firm, while all the bakeries together form the baking industry.

(ii) Location versus localization of industry. Location refers to the choice of a particular site or place where a firm or industry is established. Localization is the concentration or clustering of many firms of the same industry in one particular area (for example, several textile mills sited in the same town) to enjoy the advantages of being close together.

(b) Four factors that influence the location of industries in Nigeria.

• Nearness to raw materials: industries using bulky or perishable materials (e.g. cement, food processing) locate close to their sources to reduce transport cost.
• Availability of labour: firms site where suitable skilled or cheap labour is available.
• Nearness to market: firms locate near large populations to cut the cost of distributing finished goods.
• Availability of power and water supply: reliable electricity and water are needed for production.
• Good transport and infrastructure: access to roads, railways and ports.
• Government policy: incentives, tax reliefs or industrial estates that attract firms to particular areas.

Examination reminder: keep location (choosing a single site) distinct from localization (many similar firms clustering in one area).