Principles of Business

Linkage Industries
(1) Define the terms “backward linkages” and “forward linkages”.
Backward linkages - the demands of an industry leads to the establishment of other
industries to provide for the needs of this industry.
Forward linkages - the final or finished products are used in another industry
as its raw material.

(2) Identify TWO backward linkages and TWO forward linkages in chicken
production.
Two backward linkages are .. and two forward linkages are and.

(3) Discuss THREE benefits of linkage industries.

Three benefits are economic ties (creates more jobs), promotes innovation and use
of technology and the increase in large scale production (for local and export
demand).

(4) Suggest TWO measures that the government could use to encourage the
development of linkage industries in your country.
The government can give away loans for small businesses (preferably
farming) this can help us (as a country) to save more on exports.

(5) Illustrate how ONE of the measures suggested in (4) above may be implemented.
This can be done by the government sending out a registering application for all
small businesses that may need a start up for their business. It can be done online
and in person.