location of firms of an industry is not influenced by?

Analyze the question: We are asked which factor does not influence where a firm or industry chooses to locate.

Concept: Factors influencing industrial location Firms usually choose a location based on:

• Availability of raw materials: Industries that use bulky or perishable inputs (e.g., cement, palm oil, sugar) locate close to the source.
• Existence of other firms: This leads to external economies of scale and agglomeration, for example the Ikeja or Agbara industrial estates and Aba's clusters.
• Government policy: Incentives, industrial estates, tax holidays, and the deliberate spread of industries to different regions.
• Other factors: Nearness to the market, transport, power, water, labour supply, and climate.

Check each option:

• A. Availability of raw material: This is a major influence, so it is not the answer.
• B. Existence of other firms: This does influence location through shared infrastructure, suppliers, and skilled labour, so it is not the answer.
• C. Nearness to the source of money supply: Money supply is controlled by the Central Bank and flows through the banking system nationwide. Funds can be transferred electronically or through banks anywhere, so a firm does not need to be physically close to the "source" of money. This does not influence location.
• D. Government policy: This strongly influences location through incentives and regulations, so it is not the answer.

**Answer: C.

Tip: In "which is NOT a factor" questions, test each option against the standard location factors: raw materials, market, labour, transport, power, government policy, and external economies. The option that does not fit any of these is the answer. Capital and money are mobile, so they rarely determine location.