In some countries, governments encourage businesses to move outside of the cities to solve the problems of housing and transport in the cities. What are the advantages and disadvantages of this policy?

It is often argued that the government have been trying to reallocate big associations to small places to prevent overload houses and traffic jams.

Although

this

could decrease the company's profit, it would help the

country

's economy. The following paragraphs will highlight the upsides and downsides of

this

policy and some relevant examples.

First

of all, stores in the big downtown are well visited and they have a significant performance as there are many buyers passing by. Reallocating those companies to places that are quiet, means that they would sell less and it could be harmful to their businesses.

Therefore

, companies would have to open shops in many ports that would cost a lot or accept their new wage.

For example

, a particular company which is placed in the centre city of Rio de Janeiro sells much more than the ones that are in the countryside. For that reason moving outside of the city would be a huge disadvantage to trade.

On the other hand

,

this

could be immensely helpful to the

country

's economy. As the businesses start to rise in small centres, it would

also

grow the job opportunities all around the

country

and reduce dramatically the number of unemployed.

For instance

, a young person who is looking for his

first

job can easily find some around the town,

instead

of leaving for a big city.

This

would improve the lives of people around the

country

and small communities.

Moreover

, it would help prevent poverty. To conclude, having big companies around the

country

could benefit the population in the countryside and prevent poverty.

However

, reallocating businesses to small places could harm their profits.