In some countries, governments are encouraging industries and businesses to move to regional areas outside the big cities. Do the advantages of this trend outweigh the disadvantages?
A businessman once said that it is not advisable to put all eggs in one basket. Some governments in different nations are motivating firms and other industries to relocate their businesses in rural areas rather than the central cities. I do believe that this has greater benefits and outweighs the disadvantages.
Once businesses are moved to provincial areas, the taxes will improve; hence, road infrastructure such as bridges and roads will be developed. With this change, more people will have access to this place and more businesses will flourish. It can be claimed that the more businesses, the more demand of manpower will be. Moreover, overpopulated cities nearby will start to decongest because they have the option to work in their hometowns rather than moving to another place. For example, Chennai was underdeveloped, but after moving some businesses, everything followed, and now this city is more popular than New Delhi, the capital of India.
However, it is believed that moving businesses in rural areas will cost more and there will be a possible monopoly in this area. The cost of transportation of construction materials is not a walk in the park, which means that hundreds or thousands of trucks need to move from point A to point B every day just to build a standard building. In addition, road infrastructures are not that developed yet, so the time of completion may be jeopardized and it will cost more. Some may also abuse this opportunity by monopolizing a particular business in an area. For instance, the construction company will charge more for their materials and it will cause a major price change.
In conclusion, there are both advantages and disadvantages when it comes to the decentralization of businesses and industries. However, in my opinion, these disadvantages are only minor and isolated cases and the price of any developments is not that cheap.