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Difficulty: EasyLocation and Localization of Industries

Match each industrial location factor or phenomenon on the left with its corresponding Nigerian economic scenario on the right.

  • Market-oriented location (Perishable or weight-gaining product)Commercial bread bakeries sited in densely populated areas of Lagos
  • Raw material-oriented location (Weight-losing material)Cement manufacturing factory located near limestone deposits at Ewekoro
  • Localization of industry (Industrial agglomeration)Concentration of traditional leather tanning workshops within Kano city
  • Government policy interventionEstablishment of tax-free industrial estates in the Calabar Free Trade Zone

Answer

Market-oriented location matches with commercial bakeries in Lagos; Raw material-oriented location matches with cement factory near limestone deposits at Ewekoro; Localization of industry matches with concentration of leather tanneries in Kano; Government policy intervention matches with Calabar Free Trade Zone tax incentives.
Market-oriented industries locate near consumers to handle perishable or weight-gaining outputs. Raw material-oriented industries locate near inputs when handling weight-losing materials like limestone. Localization involves the concentration of multiple firms of the same industry in one geographical area, such as Kano's leather industry. Government intervention uses industrial estates and tax incentives to influence location.

Step-by-Step Solution

1
Analyze market-oriented firm location factors.
Perishable goods such as fresh bread gain value and perish quickly, requiring proximity to urban consumer centers.
Siting near markets reduces final product distribution costs and spoilage risks.
2
Analyze raw material-oriented firm location factors.
Bulky raw inputs like limestone lose significant weight during processing into cement.
Transporting raw inputs is more expensive than transporting processed outputs for weight-losing processes.
3
Distinguish firm location from localization of industry.
The concentration of many leather tanning businesses in one city (Kano) represents spatial clustering of an entire industry.
Localization refers to the concentration of multiple firms in the same trade within a specific region.
4
Identify government policy measures affecting industry.
Free trade zones and fiscal incentives represent direct state intervention in industrial placement.
Governments use spatial policy to encourage regional development and industrialization.

Key Concept

Factors governing industrial location versus industrial localization
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Topics

Location and Localization of Industries

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