Home » Past Questions » Economics » One of the problems arising from the localization of industries is?

One of the problems arising from the localization of industries is?


Question

One of the problems arising from the localization of industries is?

Options

A)
high prices of output
B)
the exportation of output
C)
the scarcity of foreign exchange
D)
structural unemployment

The correct answer is D.

Explanation:

This question is asking about one of the problems that arise from the localization of industries. Localization of industries refers to the concentration of industrial activities in a particular area or region.

Option A suggests that the problem arising from the localization of industries is the high prices of output. This is not a correct answer because localization of industries can lead to economies of scale and lower production costs, which can result in lower prices of output.

Option B suggests that the problem arising from the localization of industries is the exportation of output. This is not a correct answer because exporting output can actually benefit the economy by earning foreign exchange and expanding market opportunities.

Option C suggests that the problem arising from the localization of industries is the scarcity of foreign exchange. This is not a correct answer because localization of industries can actually reduce the dependence on foreign exchange by promoting domestic production.

Option D is the correct answer. It suggests that the problem arising from the localization of industries is structural unemployment. This means that the concentration of industries in a particular area or region can lead to unemployment in other areas or regions. For example, if a particular industry is concentrated in one region, workers in other regions may lose their jobs as the industry moves away from them.

In summary, the problem arising from the localization of industries is structural unemployment as stated in Option D. To learn more about this topic, please read the relevant sections of the recommended textbooks.


More Past Questions:


Discussion