NABTEB Economics 2013 Theory — Question 13

Model answer

(i) Creation of Employment Opportunities: concentrating many industries in a particular area creates employment opportunities in that area. (ii) Provision of Social amenities: an area with many concentrated industries will attract social amenities from government or organizations. (iii) Attraction of more people to the area, as a result of job availability, increasing the number of consumers of the products of firms in that area (also leads to invention and innovation, healthy competition and research, and inter-dependence of firms deriving mutual benefits from concentration in the area).