Which concept describes the industrial deconcentration that occurs when congestion or technological changes drive firms away from crowded areas?

• A. Agglomeration
• B. Localization
• C. Deglomeration
• D. Globalization

Answer: (C)

Deglomeration is the process where firms disperse from crowded, dense areas due to congestion, higher costs, or new technologies that allow operation from less central locations. This concept captures the idea of deconcentration driven by the drawbacks of clustering and the shifting feasibility of locating far from busy urban centers. It contrasts with agglomeration, which describes firms clustering to share inputs and benefits, localization, which focuses on concentrating a particular industry in a region, and globalization, which looks at spreading production across international boundaries. So when congestion or technological change pushes firms to move away from crowded areas, degglomeration is the best description.