Posted by Chester Morton / Wednesday 4 January 2017 / No comments
The advantages of localization of industries
Definition of localization of industries
Localization of industries refers to the situation where a
particular type of industry of group of industries are located in a particular
area in order to take advantage of some peculiar facilities that are available in
that locality
ADVANTAGES OF
LOCALIZATION
Creates labour efficiency
One of the advantages of localization of industry is that it
encourages the efficiency of labour in that particular region. This is due to
the fact that they engage in the same type of industry at a given location and
the skills set are the same or almost the same.
Availability of capital
The banks are willing to extent loan facilities to the
industry. In other words funds are readily available for expansion, innovation,
research and many more.
Ready market
Another advantage of the localization of industry is that there
is ready market for the products in the locality. People from far and near come
to procure, to made orders, to make inquiries concerning the goods that are
produced there. Deals are concluded faster.
It encourages inventions
Another advantage of the localization of industry is that it
brings about new inventions. This is due to the fact that activities are
concentrated in the same area and set of skills so newer and better ways of
doing things are sought for and found.
May drive down prices
As better ways of doing things are discovered, the cost of
production is driven down so that prices of finished products become cheaper
compared to other areas of the globe. This serves as an attraction for marketers
all over the world.
Efficient use of by-products
The by-products that are generated as a result of the
operations of the industries are put to a better use. In some cases, the waste
product of one company is the raw material of another company so waste and
by-products are put to a better use.
It encourages research
Finally, localization of industries encourages research. Scientists
in the area can research into how to improve upon ways of doing things, into
improving upon products and into better ways of marketing the industry. The results
of the various researches are aggregated and training developed around it to
facilitate more positive change.
SAMPLE QUESTIONS
1. Highlight six advantages of the location of industries.
