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?
This mathematics problem involves applying core mathematical principles and formulas. Below you will find a complete step-by-step solution with detailed explanations for each step, helping you understand not just the answer but the method behind it.
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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.
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