EXERCISE 1 Consider that the number of people employed in the furniture Industry in the Northwest Region of…

Question

EXERCISE 1 Consider that the number of people employed in the furniture Industry in the Northwest Region of Cameroon is 20000 and the number of people employed in all manufacturing industries in the Northwest region is 40000.Then what will be the Location Quotient if the number employed nationally in the Furniture industry is 50000 and all manufacturing industries workers are 200000?

ScanSolve AI Tutor · Accepted Answer

To calculate the Location Quotient (LQ), we use the following formula: LQ = [(Regional employment in specific industry) / (Total regional employment)] / [(National employment in specific industry) / (Total national employment)] Step 1: Identify the given values. Regional employment in furniture industry (Northwest Region) = 20000; Total regional employment in all manufacturing industries (Northwest Region) = 40000; National employment in furniture industry = 50000; Total national employment in all manufacturing industries = 200000 Step 2: Calculate the regional share of employment in the furniture industry. Regional share = (20000) / (40000); Regional share = 0.5 Step 3: Calculate the national share of employment in the furniture industry. National share = (50000) / (200000); National share = 0.25 Step 4: Calculate the Location Quotient. LQ = (Regional share) / (National share); LQ = (0.5) / (0.25); LQ = 2 The Location Quotient for the furniture industry in the Northwest Region is 2.

Step-by-step solution

Identify the given values.

Calculate the regional share of employment in the furniture industry.

Calculate the national share of employment in the furniture industry.

Calculate the Location Quotient.

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