Cottage Industries in Developing Nations

The video explores the concept of cottage industries, small-scale manufacturing businesses often run from homes. It discusses their historical significance, evolution, and role in both developing and advanced economies. Cottage industries provide income opportunities, especially in rural areas, and cater to niche markets with handcrafted products. Despite challenges from larger producers, they thrive by leveraging traditional craftsmanship and modern technology.

What is a defining characteristic of a cottage industry?

• Automated machinery

• High initial investment

• Large-scale production

• Operated from a home

Which of the following was NOT a typical product of early cottage industries?

• Textiles

• Metal parts

• Automobiles

• Shoes

Why are cottage industries significant in developing countries?

• They require large investments

• They are primarily export-oriented

• They rely on advanced technology

• They provide income with minimal investment

What advantage do developing nations have in creating successful cottage industries?

• Access to global markets

• High cost of living

• Advanced infrastructure

• Lower cost of living

What is a major challenge for cottage industries when competing with larger producers?

• Lack of skilled labor

• High production volume

• Need for new technologies

• Limited access to raw materials

How has mobile technology impacted cottage industries?

• Increased production costs

• Reduced product quality

• Improved operational capabilities

• Decreased market reach

Which market is ideal for cottage industries?

• Global exports

• Mass production

• Luxury goods

• Niche markets

What is an example of a modern cottage industry platform?

• Etsy

• Walmart

• Alibaba

• eBay

What is a key takeaway about cottage industries in advanced economies?

• They are government-funded

• They require high technology

• They produce handmade goods

• They rely on mass production

What role do cottage industries play in rural areas?

• They are the main source of employment

• They focus on digital services

• They replace agricultural jobs

• They provide supplemental income