Local governments are pushing companies to move from large cities to regional locations. What are the benefits and drawbacks of this? Give reasons for your answer and include any relevant examples from your own knowledge or experience

In a growing number of countries, it has been seen that regional governments have been encouraging businesses to relocate from metropolises to less developed areas. While the movement of companies to regional areas can boost employment and expand those places, businesses might face some challenges in terms of employing a skilled workforce and profits which might constitute relevant disadvantages. On the one hand, the decision of local Governments to attract businesses to regional areas is likely to be economically and socially advantageous for locals. With regards to the former, the establishment of new industries in non-centralised areas,

such

as towns, villages or more rural places undoubtedly results in more jobs and can be a solution for high unemployment rates seen outside urban areas. More job opportunities mean a higher investment in those areas, namely in the construction of new development projects

such

as more houses, new schools and hospitals as the number of inhabitants is likely to increase and so will their basic needs. Taking Telford as an example, one of the fastest-growing towns in the UK shows how the movement of businesses from mega cities, in

this

case Birmingham, has allowed the expansion of other areas in the country

therefore

improving the national welfare.

Consequently

, the quality of life in regional areas has been enhanced, thanks to new industries which have attracted people to live and work there.

On the other hand

, companies which relocate to regional areas might face relevant and pertinent challenges.

Firstly

, because they are moving to more underpopulated areas, they are less likely to find a highly-skilled workforce. Nowadays, there is no doubt that students and qualified professionals tend to choose urban living because it offers a high-standard of universities and better career opportunities.

Secondly

, companies who move to regional areas can be taking a risk in terms of profits because these areas may not offer much potential as large cities do.

This

is due to the fact that the former lacks infrastructure

such

as roads and railways necessary to transport materials for industries. Taking the distribution of ports as an example, these are mostly located

next

to cities, turning the trade of goods and services far more accessible, quicker and

thus

cheaper in comparison to more remote areas.

Therefore

, regional areas may lack essential features that might compromise the profitability of businesses. In summary, there is no doubt that it can be enormously beneficial for local population when governments attract more businesses to regional areas.

However

, those who chose or are obliged to relocate can face some critical drawbacks which may hinder their future progress.