NECO 2009 Economics · Question 14
The process of building up country’s capacity to process raw materials for the production of goods is known as
Options
- A.firm
- B.industry
- C.industrialization
- D.location of industry
- E.localization
Answer: C. industrialization
Explanation written with AI and checked against the answer key
Step 1: Analyze the question The question asks for the term describing the process of building a country's capacity to turn raw materials into finished goods. The key words are "process", "building up capacity" and "raw materials into goods".
Step 2: Explain the concepts
- Firm: a single business unit that produces goods or services.
- Industry: a group of firms producing similar products, such as the textile industry. It is a thing, not a process.
- Industrialization: the process of developing manufacturing and processing capacity in an economy, so that raw materials are converted into finished or semi-finished goods.
- Location of industry: the choice of where to site a factory or industry, based on factors like raw materials, power, labour and market.
- Localization: the concentration of an industry in a particular area, for example cocoa processing in a particular region.
Step 3: Match to the question The question describes a process of building a national capacity to process raw materials. Only industrialization fits. Firm and industry name entities, while location of industry and localization are about where production takes place, not about building capacity.
Step 4: Answer The correct option is C. industrialization.
Tip: Words ending in "-ization" often signal a process (industrialization, urbanization, privatization). When a question says "the process of...", look for these first. Also remember that industrialization is a major goal of developing countries like Nigeria, because it adds value to raw materials, creates jobs and reduces dependence on imports.
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