1. Developing industry constitute a fundamental way of achieving a diversification of the economy. This is especially important in the case of developing countries which are often heavily dependent on one or two primary products. Therefore industrialization will reduce reliance on primary production.
2. The demand for primary products is income inelastic and is therefore not likely to increase proportionally as income rise. However, the demand for industrial products on the other hand is more income elastic thus developing industry is a good long run strategy since world demand for industrial products is likely to increase as income rises.
3. The output for industry is subject to fewer price fluctuations than agricultural outputs, essentially because the demand and supply for industrial output is more price elastic than that of agricultural products.
Industrial production is therefore associated with a money steady income for products.
4. The establishment of export promotion industries especially in labour intensive manufacturing is a good way of generating foreign exchange and strengthening the balance of payment especially in the long run.
5. Industrialization can be an important source of employment that is not seasonal. This is especially the case of small scale labour intensive industries.
6. Industry plays an important role in the economic development of a country by facilitating the development of other sectors through the provision of vital inputs such machinery for the agricultural sector. In addition, industry has backward linkages with sectors such as agriculture by adding value to agricultural output as in the case of food processing.
Dullayo answered the question on May 11, 2018 at 10:58
- Briefly explain SIX characteristics of money(Solved)
Briefly explain SIX characteristics of money.
Date posted: May 11, 2018. Answers (1)
- Explain the different preferences for risks by individual farmer(Solved)
Explain the different preferences for risks by individual farmer.
Date posted: May 11, 2018. Answers (1)
- Briefly define the term ' trade union' and explain why do workers join a trade union?(Solved)
Briefly define the term ' trade union' and explain why do workers join a trade union?
Date posted: May 10, 2018. Answers (1)
- Explain FOUR factors affecting the size of a National Income.(Solved)
Explain FOUR factors affecting the size of a National Income.
Date posted: May 10, 2018. Answers (1)
- Explain five factors which determine the productivity of labour(Solved)
Explain five factors which determine the productivity of labour.
Date posted: May 9, 2018. Answers (1)
- Briefly describe four theories used to determine wages of labourers(Solved)
Briefly describe four theories used to determine wages of labourers.
Date posted: May 9, 2018. Answers (1)
- Explain the reasons for studying International Economics(Solved)
Explain the reasons for studying International Economics
Date posted: May 9, 2018. Answers (1)
- Outline the assumptions of Economic Order Quantity (EOQ)(Solved)
Outline the assumptions of Economic Order Quantity (EOQ).
Date posted: May 8, 2018. Answers (1)
- Outline methods used to derive Economic Order Quantity (EOQ)(Solved)
Outline methods used to derive Economic Order Quantity (EOQ).
Date posted: May 8, 2018. Answers (1)
- Outline the types of inventory control system.(Solved)
Outline the types of inventory control system.
Date posted: May 8, 2018. Answers (1)
- Outline objectives of inventory control(Solved)
Outline objectives of inventory control
Date posted: May 8, 2018. Answers (1)
- Discuss the impact of agricultural activities on environmental degradation(Solved)
Discuss the impact of agricultural activities on environmental degradation.
Date posted: May 6, 2018. Answers (1)
- Discuss causes of market failure in environmental economics(Solved)
Discuss causes of market failure in environmental economics.
Date posted: May 6, 2018. Answers (1)
- Explain the reasons why commercial banks prefer to lend Short-term loans(Solved)
Explain the reasons why commercial banks prefer to lend Short-term loans.
Date posted: May 6, 2018. Answers (1)
- Discuss various goals of an economic policy(Solved)
Discuss various goals of an economic policy.
Date posted: May 6, 2018. Answers (1)
- State six uses of ratios(Solved)
State six uses of ratios
Date posted: May 3, 2018. Answers (1)
- Outline four critical issues which must be noted when carrying out trend and industrial analysis(Solved)
Outline four critical issues which must be noted when carrying out trend and industrial analysis
Date posted: May 3, 2018. Answers (1)
- Describe the classifications of financial ratios.(Solved)
Describe the classifications of financial ratios.
Date posted: May 3, 2018. Answers (1)
- Outline the two basic financial statements(Solved)
Outline the two basic financial statements
Date posted: May 3, 2018. Answers (1)
- Define the term financial statement analysis.(Solved)
Define the term financial statement analysis.
Date posted: May 3, 2018. Answers (1)