Question

Using the following information, determine the location quotient for Motor City: employment in motor vehicle manufacturing within Motor City: 12,643; total employment in Motor City: 560,379; employment in motor vehicle manufacturing (nationally): 152,750; total employment (nationally): 106,201,232.

Answer 1

Answer: The location quotient is 1.39

Explanation: The quotient value expresses the degree of concentration of the activity in the region in relation to the territory of reference. Its meaning is that a value greater than 1 means a concentration more than proportional in the region. Therefore, the result of this ratio can also be translated into the degree of concentration of the activity in a given region with respect to the set of regions.