The latest article writing by KAUSH on the expansion of BCH house across the African is the same as defining localisation of industry.
This is going to bring a lot of opportunities to Africa, opportunities in terms of employment, economic growth and development and lot more. Now to L.I
LOCALISATION OF INDUSTRIES
Localisation of industries refers to the concentration of firms in a particular area or locality. The essence of this is for firms to enjoy external economies of scale that have been created by pioneer industries in the area of technology, transportation, communication, accommodation and other facilities.
The localisation of industries may be effected by deliberate attempt on the part of the concerned firms or affected by accident in which case the affected firms do not consult one another before going to the area. Nigeria as an example,localisation of industries abound. Meaning many firms concentrated in Lagos,Port Harcourt and kano. Also in Ghana a lot of firms are localised in Tema while in British, numerous firms are excessively concentrated in area such as Lancashire, Liverpool, Black country,Tyneside and so on.
ADVANTAGES OF LOCALISATION
It promotes division of labour and specialisation among firms. They both lead to greater output and so localisation will do the same.
It leads to the pooling of skilled labour and raw materials. The firms can buy materials together, pay for transport together and as a result effect reduction in the prices of their commodities.
It facilitaties the timely acquisition of skilled labour by new firms. In other words, where there are firms producible identical goods or services,getting experienced workers(skilled,semi skilled and unskilled) will not be a herculean task for the individual firm as far as it can afford to pay.
It facilitaties the springing up of subsidiary firms which serve the major firms in one way or the other for their special needs.
It enhances reduction in the cost of production in different ways.
Common problems can be identified together and panacea can jointly be proffered for them.
DISADVANTAGES OF LOCALISATION
Localisation encourages uneven development. This is not good for countries which are large and heterogeneous or polarized along certain lines.
It is characterised by the risk of unemployment resulting from interdependence of firms when there is change in demand. The problem of unemployment will be compounded in a situation where the workers affected are characterised by inertia.
Localisation encourages the concentration of population in the industrial localities and he resultant effects of this will be problem of regional planning, problem of accommodation, overcrowding and high cost of living.
There is the risk of air pollution as a result of smoke emanating from the machines.
The localities where the firms are concentrated can be points of target during war.
The word HOPE should be washed away, REALITY is what is need right now. I strongly believe with you and me the battle can be conquered.
WE BOTH COUNT
Exactly the same from all perspectives. We can even term this as super-localisation of industries across Africa in integration with a reasonable cryptocurrency that is really solving problems and aligning itself for global adoption.