Posted by Chester Morton / Wednesday, 4 January 2017 / No comments
The disadvantages of localization of industries
Localization of industries explained
DISADVANTAGES
Decreases the mobility of labour
One of the disadvantages of the localization of industry is
that it decreases the mobility of labour which is a reference to how workers
move from one region or geographical location. Since the industry is located in
that particular region or area, the labour is concentrated there and the
workers no longer wish to relocate.
Uneven development
Another disadvantage of the localization of industry is that
it may lead to the uneven development of the country. This is because the
development of infrastructure is directed toward the enclave where the
industries are located to the disadvantage of other parts of the country. Also
the particular industry becomes more developed to the detriment of the other
sectors of the economy.
Manpower development is one-sided
Another disadvantage of the localization of industries is
that it leads to the development of only some set of skills. That is, skills
related to the particular industry. For example, if the industry is mainly in
software, the development of manpower would be concentrated in the area of
software.
Unemployment
Following from the previous point, where only some aspect of
manpower is developed, those who do not have the skill sets related to the industry
that is prevalent in the area cannot acquire jobs. Therefore the localization
of industries can lead to unemployment and job losses. This can also lead to
dire economic consequences for the people in the locality.
Could be a target during wars
One critical disadvantage of the localization of industry is
that the area could become a target for enemy soldiers in times of war. The
enemy might attack the enclave to dislocate any advantage it thinks the located
industry might be giving to the country. It might also be a target for
terrorists who might want to get at the country.
It might attract criminal elements
Where there is wealth, criminal elements are attracted to
that area. The localization of industry with its attendant creation of wealth attracts
gangs, prostitutes, pimps and all kinds of people. In the end, what is to be a
blessing becomes a burden to some people.
SAMPLE QUESTIONS
1. What are the disadvantages of the localization of
industries?
2. Highlight six ways in which the localization of industries
can affect a country.
