Band 5+: Some people think that it would be better for large companies and industry to move to regional areas outside large urban centers. Do you think the advantages outweight the disadvantages?

Relocating companies from urban area to suburban region has been progressively increasing over the decade. Although establishments often struggle with security and infrastructure, while in the rural sector, they will also get their hands on low cost land, nonetheless, they can create significant employment opportunity for the people around there. In my opinion, industries are far better off relocated to less developed areas, despite the challenges they will inevitably face.

The greatest benefits of relocating are the companies can create considerable employment opportunities in these areas that will eventually improve the condition of the resident that would be impossible, if they had only slight work opportunities. Being in rural areas the companies can get economies of the scale through expanding their operations on inexpensive land rather they can use those available funds for extensive research and development, For example, In 2010, MGM had moved to ruler area results in cost saving against expensive rents, moreover, they brought in new products to market by diverting those funds to research and development.

The main challenges the establishment will face while moving out to remote areas are usually from lack of transportation infrastructure and security, additionally, these differences can pose a massive obstacle for them because one has to move beyond their capabilities and expertise to manage the said issues whereas they execute considerable measures to cope with the inconvenience. For instance, new studies have shown that the companies in rural areas had to increase their surveillance budget up by 20%. For these reasons, industries are reluctant to move out.

To conclude, relocation has become increasingly common, while companies no doubt, experience security and transportation complications, it is in fact the barriers that will lead to main advantages of relocation which is economies of scale. As a contradiction of thoughts, it is the hardship that ultimately makes the experience of relocation more advantage than disadvantages.