This refers to the concentration of related firms in one locality
ADVANTAGES OF LOCALIZATION OF INDUSTRY
- It encourages specialization.
- Social and economic services are enjoyed among the industries (external economies)
- It enhances research possibilities.
- It enhances the supply of labour.
- It encourages the development of subsidiary industries
DISADVANTAGES OF LOCALIZATION OF INDUSTRY
- Localization brings about social disorder owing to emergence of pop seeking for jobs.
- It is an area of target for bombing during war.
- It also brings about insufficiency in supply of local amenities clue to the over-crowdedness of the area.
- It causes the depopulation of the rural areas.
- It sometimes causes unemployment problems.
- It causes a high standard of ivir0 i.e. it brings about a rise in cost of living.