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Location of industry and localization of industry:
Location of industry tries to answer the key economic question "where to produce". It involves deciding on the area that an industry should be sited. Localization of industry, on the other hand, involves the concentration or centralization of firms in a particular industry within a limited area. It is the tendency for all firms in an industry to crowd or locate in a particular area, meaning the firms choose sites very close to one another. When firms of an industry do this there are certain benefits the industry as well as the community gains and there may be some problems too.
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