Question

Based on the following information, determine the location quotient for KuDu City and whether this city has a competitive advantage in the amusement industry.
Employment in Amusements and Recreation in KuDu City: 54,446;
Total Employment in KuDu City: 578,477;
Employment in Amusements and Recreation (nationally): 1,381,377;
Total Employment (nationally): 106,201,232.

Answer 1

Answer: 7.24

Explanation:

The location quotient for this question can be calculated by;

=  ( Employment in Amusements and Recreation in KuDu City / Total Employment in KuDu City) / (Employment in Amusements and Recreation (nationally) / Total Employment (nationally))

= (54,446/578,477) / (1,381,377/ 106,201,232)

= 7.2359

= 7.24