Question number 2 of long answer

Five important factors for setting up an automobile factory are

1. Sufficient demand for automobiles: There must be a critical number of consumers who are actually willing to buy automobiles. Otherwise, there is no point producing automobiles.

2. Availability of skilled workers: Producing automobiles is a technologically intensive process. Hence, there should workers available who are technically skilled to work in a automobile industry.

3. Presence of other industries like iron and steel that provide critical raw material for making automobiles.

4. A sufficiently developed banking and financial sector that can provide credit to set up and run an automobile industry.

5. Presence of infrastructure like roads so that raw material can be transported into the factory and finished automobiles transported out of the factory.

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