What are The advantages of localization of industries?

HomeCategory: EconomicsWhat are The advantages of localization of industries?
Bellajay asked 10 months ago

I want to know at least five of The advantages of localization of industries

1 Answers
Bellajay answered 10 months ago

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
ADVANTAGES OF LOCALIZATION
Creates labour efficiency
One of the advantages of localization of industry is that it encourages the efficiency of labour in that particular region. This is due to the fact that they engage in the same type of industry at a given location and the skills set are the same or almost the same.
Availability of capital
The banks are willing to extent loan facilities to the industry. In other words funds are readily available for expansion, innovation, research and many more.
Ready market
Another advantage of the localization of industry is that there is ready market for the products in the locality. People from far and near come to procure, to made orders, to make inquiries concerning the goods that are produced there. Deals are concluded faster.
It encourages inventions
Another advantage of the localization of industry is that it brings about new inventions. This is due to the fact that activities are concentrated in the same area and set of skills so newer and better ways of doing things are sought for and found.
May drive down prices
As better ways of doing things are discovered, the cost of production is driven down so that prices of finished products become cheaper compared to other areas of the globe. This serves as an attraction for marketers all over the world.
Efficient use of by-products
The by-products that are generated as a result of the operations of the industries are put to a better use. In some cases, the waste product of one company is the raw material of another company so waste and by-products are put to a better use.
It encourages research
Finally, localization of industries encourages research. Scientists in the area can research into how to improve upon ways of doing things, into improving upon products and into better ways of marketing the industry. The results of the various researches are aggregated and training developed around it to facilitate more positive change.