Q. Consider the following statements regarding footloose industries:

1. A footloose industry can be located at any location without any special economic advantage or disadvantage.
2. The transportation cost in footloose industries is only a small fraction of the total cost.
3. Footloose industries generally do not require highly skilled workers.

Which of the above statements is / are correct?
Answer: Only 1 and 2
Notes: Statements 1 and 2 are correct. Footloose industries are not tied to location due to negligible transportation costs; their products are small, high-value and transport is a minor cost. However, these industries generally require highly skilled workers (thus, statement 3 is incorrect). Examples include precision electronics, diamond cutting, and watch manufacturing.