A major disadvantage of localization of industry is?

A. the risk of structural unemployment
B. over-utilization of installed industrial capacity
C. the risk of seasonal unemployment
D. under-utilization of installed industrial capacity

Correct Answer:

Option D – under-utilization of installed industrial capacity

Explanation

Localization of industries in a particular locality creates many social problems such as congestion, emergence of slums, accidents, strikes etc. These adversely affect the efficiency of labour and the productive ability of the industry.