Posted by Chester Morton / Wednesday 4 January 2017 / No comments
The factors that influence the 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.
INFLUENCING FACTORS
Climatic conditions
One of the factors that influence the location of industries
is the climatic condition of the area. Certain crops or animals can only thrive
under certain climatic conditions. For this reason, in setting up such
particular industry, such peculiar climatic conditions are taken into consideration
before the industry is sited.
Availability of raw materials
Another factor that can influence the location of an industry
is the availability of raw materials. Industries need raw materials to feed
their factories and it must be easily available at all times. An entrepreneur would
take such an important issue into consideration in the sting of his industry.
Source of power
One of the factors that must also be taken into consideration
in the localization of industry is the source power or electricity. Every
industry needs power to turn its machines for production to take place. No
entrepreneur wants to install a plant and sit down idle because there is no
electricity.
Nearness to markets
When goods are produced, they must be sold for profit. The availability
of markets for the goods produced is an important factor in the localization of
an industry. Once there is a market close by where the goods can be quickly
sold it is a factor to determine the localization of industry.
Availability of labour
Labour is another factor that influences the location of industries.
Labour is an essential component of production. Where labour is readily
available and at a competitive price, industries would gravitate to that
location. In other words, labour influences the localization of industries.
Government intervention
Another factor that influences the location of industry is
government policy. A government can decide to create an enclave for the
production of particular goods and therefore offer incentives to encourage
people to locate in that area. The free zones concept is an example of
localization of industry. The government can give tax exemption and facilitate
concessionary loans to entrepreneurs to locate their industries in a particular
locality.
SAMPLE QUESTION(S)
1. Highlight six factors that influence the location of
industries.
