The proposal in moving the multinational companies outside the cities is an argument both supported and refuted by many. While some believe that this will be beneficial as to promote economic growth in rural areas, others think that it will not be favorable to the company. It is agreed that the advantages outweigh disadvantages as it will be discussed.
The major factor to consider in relocating the factories in rural places is economic growth. As this means that more jobs will be generated and people’s quality of life will improve. For example, in the recent survey at the University of Queensland, it concluded that when businesses are spread in the adjacent towns, more residents become employed resulting in the improvement in people’s life. Furthermore, it can also lead to an increase tax collections, making it sufficient to meet the needs of its residents. All of these are the positive indicators of economic growth. In contrast, if the rural areas were not converted into a business district, the town will not progress and still belong to a backward society.
The downside effect of massive transformation of the town into an industrial park is the cost of relocation. A huge amount of outflow will be required for a company to reconstruct their infrastructure which includes the manufacturing plants and the satellite offices. The rate of return for this investment will take them a long time to recover and this will have a negative effect on the expected income of the company.
In conclusion, I supported the argument that the advantage of economic growth that has a beneficial effect on the society greatly outweigh the relocation cost and late return of investment by the company. It is projected that more companies will be encouraged to do business outside the city.
The proposal in moving the multinational
companies
outside the cities is an argument both supported and refuted by
many
. While
some
believe that this will be beneficial as to promote
economic
growth
in rural areas, others
think
that it will not be favorable to the
company
. It is
agreed
that the advantages outweigh disadvantages as it will
be discussed
.
The major factor to consider in relocating the factories in rural places is
economic
growth
. As this means that more jobs will
be generated
and
people
’s quality of life will
improve
.
For example
, in the recent survey at the University of Queensland,
it concluded
that when businesses
are spread
in the adjacent towns, more residents become employed resulting in the improvement in
people
’s life.
Furthermore
, it can
also
lead to an increase tax collections, making it sufficient to
meet
the needs of its residents. All of these are the
positive
indicators of
economic
growth
.
In contrast
, if the rural areas were not converted into a business district, the town will not progress and
still
belong to a backward society.
The downside effect of massive transformation of the town into an industrial park is the cost of relocation. A huge amount of outflow will
be required
for a
company
to reconstruct their infrastructure which includes the manufacturing plants and the satellite offices. The rate of return for this investment will take them a long time to recover and this will have a
negative
effect on the
expected
income of the
company
.
In conclusion
, I supported the argument that the advantage of
economic
growth
that has a beneficial effect on the society
greatly
outweigh the relocation cost and late return of investment by the
company
. It
is projected
that more
companies
will
be encouraged
to do business outside the city.