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

Disadvantages of localization of firms

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Answer Text:
Disadvantages of localization of firms:
-May lead to population congestion giving rise to the slum problem.
-May lead to pollution and contamination of the environment
-May cause degradation of the environment in the locality
-Leads to unbalanced regional development of the economy.
-infrastructure and social amenities are overstrained.
-encourages rural urban migration hence creating pressure in urban centres.