Consider the following statements regarding footloose industries 1 Footloose industries are those in...........

Indian Economic System Industry

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Consider the following statements regarding footloose industries:

1. Footloose industries are those industries which enjoy relatively free choice of location.

2. The cotton industry is an example of a footloose industry.

Which of the statements given above is/are correct?

1 only

2 only

Both 1 and 2

Neither 1 nor 2

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Explanation:

Statement 1 is correct. Footloose industries refer to those that are not bound by location constraints and can operate in a wide range of locations. They are not heavily dependent on raw materials, power supply, or other factors that might limit their location.

Statement 2 is incorrect. The cotton industry is not typically considered a footloose industry because it depends on the location of raw materials (cotton) and may also be influenced by proximity to markets and labor. Footloose industries are more often related to high-tech or service industries that rely more on human capital than on natural resources.