It should also be remembered that the location quotients derived must be viewed with common sense. For example, if we had determined that the location quotient in Tool City in manufacturing was less than 1, it would have been very puzzling to say the least. Especially since we know that one of Tool City's largest employers are its tool manufacturers and that most of their production is exported. Therefore, had we encountered a situation such as that described we would need to conduct more detailed investigation to determine why. The Final Step Basic and non-basic industries have now been identified in Tool City.
Strategic questions arise.
In other words, we can begin to identify our strategic targets of opportunity. We hope this has helped you gain a sense of the benefits which location quotient analysis can provide in your community or county's economic development efforts. Return to top If you wish to send us a private comment or suggestion about the site click here . All rights reserved. Reproduction in whole or part without written permission is prohibited.