Industrialization is the process of___________

1. Analyze the question The question asks for the definition of industrialization, a basic concept in the Economics syllabus (Industrialization and Industrial Development).

2. Explain the concept Industrialization is the process by which an economy shifts from depending mainly on agriculture and the extraction of raw materials (farming, mining, crude oil, timber) to producing goods in factories. It involves manufacturing, processing and the use of machines and technology. Raw materials are converted into semi-finished or finished goods, which adds value, creates jobs and raises national income.

3. Check each option

• A. Concentrating a firm in a place: This describes localization or agglomeration of industries, not industrialization.
• B. Transforming an economy based on extractive to manufacturing: This matches the definition. The economy moves from extracting raw materials to making goods.
• C. Transferring a government industry to individuals: This is privatization.
• D. Transforming finished goods into semi-finished goods: This is the wrong way round. Manufacturing turns raw materials into semi-finished goods and then into finished goods.

4. Answer The correct option is B.

5. Exam tip Match each term to its meaning:

• Industrialization = extraction → manufacturing
• Privatization = government → private owners
• Localization = firms clustering in one area

For Nigeria, think of the shift from exporting crude oil and cocoa to refining and processing them locally, as in the Dangote Refinery.