You should spend about 40 minutes on this task.
In some countries, governments are encouraging industries and businesses to move out of the cities and into regional areas. Do you think the advantages of this outweigh the disadvantages? Give reasons for your answer and include any relevant examples from your own knowledge or experience.
Write at least 250 words.
It is often seen that the policy-makers are persuading industries and enterprises to move their physical location towards remote areas, outside the cities. I definitely think this has some genuine positive impacts, which can overshadow its negative consequences.
From the firms’ perspective, this move can reduce their functioning expense. To be precise, in cities, the cost of living, goods and services is much higher than the regional areas. The second advantage of this is that it provides more space. To be clearer, in most cities, businesses and industries are established in congested areas, with lot of traffic and multistoried buildings, whereas in remote places, ample space is available. Another benefit they would get is the support from their respective governments to setup special economic zones, both financially in terms of tax exemptions and politically in terms of easing legal requirements.
From the governments’ perspective, the move is a great leap in easing the congestion in urban areas. To explain it further, businesses and large industries who are centred in cities accommodate much larger people, and when these people are decentralised towards the sub-urban areas, it will be a giant step to ease the over-crowding in cities. From the environmental perspective, it reduces the pollution and over-exploitation of resources.
Turning to the drawbacks, the entrepreneurs are expected to wait longer to get their desired profit, and often they might encounter loss. It is also difficult for them to hire more skilled employees towards these less-developed areas. In case of the state, it cannot guarantee the requisites these companies demand and has to sacrifice a significant proportion of revenue in the form of tax.