(a) Location of industries refers to the choice of a site of a firm in an industry. The factors taken into consideration in choosing a site may be economic or political. On the other hand, localization of industries refers to the concentration of firms of an industry in a particular area.
(b) Advantages of locating industries in the rural areas are:
(i) It checks the drift of young people from the rural areas to the towns and cities.
(ii) Labour is likely to be cheaper in the rural areas.
(iii) Transportation and accommodation problems of staff are likely to be less acute.
(iv) The industrial atmosphere would be more peaceful, free from traffic congestion.
(v) A market would be provided for local raw materials and skills.
(vi) Land is likely to be more easily available in the rural areas.
(vii) It will be easier for the firm to get raw materials in the rural areas.
(viii) It would bring about development and improvement in the standard of living in the area.
Disadvantages of locating industries in the rural areas are:
(i) Basic infrastructure may not be available. The industry may have to provide such Infrastructure at its own expense, thus raising the unit cost of production.
(ii) Skilled workers from the urban areas may be unwilling to work in the rural areas, unless they are given substantial incentives.
(iii) There may not be suitable accommodation that could be rented for use as factories and offices. The business may have to build its own houses at great expense
(iv) It is more difficult for workers to find alternative employment if they lose their jobs for one reason or the other.
(v) Damages and losses may be suffered when moving the goods to the markets in urban areas.
(vi) The market for finished goods may be small or non-existent in the rural areas