Observation

A good number of candidates attempted this question and scored relatively high marks. Candidates were required to distinguish between a firm and an industry, location and localization of industry and to describe some factors influencing the location of industry in their countries. Most candidates were able to distinguish between a firm and an industry, location and localization of industry but most of them could not adequately explain factors influencing location of industry. Candidates were expected to answer thus to obtain maximum marks:

(ii)       Location of industry is the siting of a firm of an industry in a particular place while localization of industry is the concentration of firms producing similar products in an area.

             industry should be located near the source of raw material.
(ii)        Regular supply of adequate power: will prevent disruption in production and reduce cost.
(iii)       Nearness to market/Population of buyers: where final product is bulky, perishable or fragile the firm should be located close to the market.
(iv)       Access to transport facilities will make for easy transfer of raw materials and finished products at minimal cost.
(v)        External economies or the location of other firms: Firms are often set up near others to take advantage of their existence.
(vi)       Influence of government: either by direct participation in the establishment or giving firms encouragement to set up in particular areas, to ensure even distribution of industry.
(vii)      Availability of both skilled and unskilled labour in a particular place/location.
(viii)     Natural factors: examples; mines and extractive industries, favourable climatic conditions for agricultural firms.
(ix)       Access to financial institutions to take care of capital and other needs.
(x)        Stable political environment to attract both foreign and local investors.