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 Form 3 Business Studies: Size and location of a firm lessons

Meaning and advantages of localization of industries

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Answer Text:
Localization and delocalization of firms.
- Localization refers to a deliberate concentration of many firms in one area.
- Localization refers to the situation where firms or industries are concentrated in one particular area instead of being spread throughout the economy.
Advantages of localization of industries.
-Enables development of a pool of skilled labour force due to interest in learning skills associated with the industry.
- Specialized services such as banks, insurance firms, legal firms, transport are attracted to the area.
- Subsidiary industries may grow to supply inputs and utilize by-products of the existing firms.
- Development of social amenities.
- Generates employment opportunities for the members of the surrounding community.
- May stimulate utilization of resource in the area.