Why should the government influence the location of an industry?

Why should the government influence the location of an industry?

  • To reduce on regional imbalance in terms of development
  • To improve on social infrastructure like roads, hospital, schools, etc.
  • To gain political support
  • To provide employment opportunities in different regions
  • To reduce on the level of social costs associated with industrialization
  • To control monopoly tendence
  • To encourage exploitation of resources like minerals
  • To enable provision of  basic infrastructure to the industries in the form of transport, power, health and education
  • For strategic reasons
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