Impact of localization of industries in  in an economy

Positive impact of localization in my country.

• Facilitates infrastructural development in the area
• Creation of more employment opportunities in the area
• Leads to cooperation of the industries in solving common problems
• Development of a pool of skilled labour
• Development of organized markets / expansion of market for products A wide variety of goods produced in the area
• Encourages (forward and backward) linkages.
• Promotes specialization and its advantages Leads to low prices of final products increased revenue to government Increased reputation  popularity of an area
• Increased security of the area (in the national interest).
• increased quality of output due to competition Increased output hence economic growth

Negative impacts of localization:

• Leads to regional imbalance in development
• Results into rural urban migration and its negative consequences.
• Over strains infrastructures in the area.
• Rise in cost of inputs
• Leads to problem of income inequality
• Quick depletion of resources in an area
• Increased cost of land / high rent rates
• Leads to environmental degradation / pollution (in the area).
• The economy becomes dependent on particular area which is risky /heavy loses to the economy in the event of a catastrophe in the area
• Displacement of people, making many landless.
• Increased cost of labour
• Leads to rising cost of living in the area