Which of the following scenarios best illustrates the concept of localization of industries, as distinct from the location of a single firm?
- The concentration of several independent leather-tanning firms within a specific region in Kano to benefit from shared infrastructure and a specialized labor pool.Cevap
- BA single cement manufacturing firm siting its processing plant near limestone deposits in Ogun State to minimize raw material transport costs.
- CAn individual cassava processing company choosing a site adjacent to a major highway in Oyo State for easy distribution to retail markets.
- DA commercial bakery establishing its operations in a densely populated suburb of Lagos to be close to final consumers.
Cevap
The concentration of several independent leather-tanning firms within a specific region in Kano to benefit from shared infrastructure and a specialized labor pool.
Localization of industry occurs when several firms in the same trade or manufacturing sector concentrate in a specific geographical area. The gathering of multiple leather-tanning enterprises in Kano to share specialized labor and infrastructure perfectly exemplifies localization and the resulting external economies of scale.
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Localization of Industries vs. Location of an Industry
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