Which of the following is NOT an advantage of localization of industry?

Analyze the question: We need the option that is NOT an advantage of localization of industry. Localization means industries of the same kind concentrate in one area, such as the Aba leather and shoe cluster, Nnewi auto parts, or Ikeja industrial estate.

Concept: Advantages of localization (external economies of scale)

• A pool of skilled labour develops in the area.
• Subsidiary and ancillary industries grow up to supply materials and services or to use by-products.
• Markets become well organized, because buyers and sellers know where to go.
• Infrastructure and social amenities (roads, electricity, water, banks) are provided because of the concentration of firms.
• Shared facilities, such as research and training, reduce costs.

Disadvantages of localization:

• Traffic congestion and overcrowding
• Pressure on social amenities
• Pollution
• Over-dependence on one industry (if it declines, the whole area suffers)
• Higher cost of land and rent

Step by step:

• A. Availability of social amenities: an advantage, since concentration attracts infrastructure.
• B. Development of subsidiary industries: an advantage.
• C. Highly organized markets: an advantage.
• D. Supply of skilled labour: an advantage.
• E. Traffic de-congestion: not an advantage. Concentrating industries in one place usually causes traffic congestion, not de-congestion. This is a disadvantage.

**Answer: E.

Exam tip: In "NOT an advantage" questions, look for the option that describes a problem or its opposite. Words like "de-congestion" can mislead you, so read them carefully. Remember that localization brings congestion, pollution, and over-dependence on one industry.