WAEC Economics 2010 Theory — Question 17

Model answer

Advantages of siting industries in rural areas include: (i) access to cheaper labour, (ii) discourages rural-urban migration by providing accommodation because of the ready availability of land in rural areas, (iii) it facilitates development of rural areas, (iv) easy access to raw materials, especially the agro-allied industry. Disadvantages include: (i) inadequate infrastructural facility, (ii) lack of skilled workers in the rural areas, (iii) low or small market for the firm's output, (iv) high cost of transportation of input and output to the city (any two).