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SS2: ECONOMICS - 2ND TERM

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Industry can be defined as a group of firms producing broadly similar goods/commodities. It is the economic activity that involves changing factor inputs into new goods or services.

Plants: This is a place where a firm carries out its productive activities. Tools and other equipment used are found in a plant 

Industrialization: This refers to the effort by a country to improve and transform raw materials into finished goods.

Roles of Industrialisation 

1. To increase the level of monetary values of an economy

2. To provide employment opportunities

3. Increase the standard of living of the people

4. To discourage over dependency on a particular sector

5. To increase the country’s foreign earnings 

6. To provide tools and machineries in order to aid production

7. To ensure effective utilisation of local raw materials of goods

8. To sustain the existence of other sector in the country.

Problems of industrialisation 

1. Inadequacy of raw materials in the area of foreign raw materials production.

2. The size of the market is small compared to the increase in demand of goods

3. Unstable political environment 

4. Shortage of capital available 

5. Improper transport networking.

Location of industry

This refers to the siting of an industry in a particular area or location.

Factors Affecting or Influencing the Location of Industry

1. Closeness to the market: This is a situation where the market is located where there is a high demand for goods and services.

2. Accessibility of good transport network: Is the provision of transport facilities such as good roads, railways lines, etc.

3. Access to proper power and energy supply

4. Political stability: The area and environment of the location is secured and conducive.

5. Provision of adequate capital for financing.

Localization of Industry

Localization of industry is the concentration of many industries or firms at a particular place or location.

Advantages of Localisation of industry

1. It helps to reduce the overhead cost in production of goods.

2. It boosts and encourages expansion in the area of economies of scale.

3. It encourages increase in employment opportunities.

4. It helps to provide an adequate market that will take care of the demand for some goods.

5. It enables the pooling of labour at the area of location of the industry.

Disadvantages of Localisation of industry

1. It can lead to an increase in pollution in that particular area where the industries are located.

2. High level of congestion and overcrowding in areas where many industries are sited.

3. It can lead to high cost of living of labour or workers in that area.

4. These areas are the targets for destruction during crises such as war or attacks.

5. Increase in unemployment can be experienced by workers in this area during times of economic depression.

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