Some people think that it would be better for larger companies and industy to move to regional areas outside large urban centers. Do you think the advantages outweigh the disadvantages?

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The shift of major multinationals from metro
cities
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to rural
areas
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is thought by some people to be a good decision for companies. In my opinion, I think that moving from urban
areas
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to regional
areas
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can bring more problems for MNCs compared to any advantages it might bring. Admittedly, there are some basic benefits to companies for leaving
cities
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.
Firstly
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, these brands can enjoy gains in profits as
this
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shift helps them to cost-cutting. Not only businesses can hire cheap labour but they
also
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pay less for expenses like electricity and rent.
Secondly
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, they can build bigger plants in these regional
areas
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which can lead to more profit.
For instance
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, big production plants can facilitate the manufacturing of more products,
hence
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, more profit. Escaping metro
cities
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,
furthermore
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, is advantageous, if product-based companies strategically plan to move considering all crucial factors.
Nevertheless
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, despite the advantages above,
i
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I
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believe firms could face serious drawbacks from setting up a new office in underdeveloped places. One potentially negative aspect is that it is extremely difficult to find the best talent near rural
areas
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.
This
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is a concern as most of the top universities are situated in tier 1/2
cities
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and hiring smart people presence in that area is important. Another obvious issue is the transportation cost of setting up plants and machinery in a rural area. Cutting-edge technology is not easily available in rural
areas
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.
Hence
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this
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makes building a new plant, in an underdeveloped place, an obvious issue. In conclusion, unskilled labour or transportation cost to setting up a new plant far outweighs any of the minor benefits that could result from cheap labour.

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Linking words for giving examples:

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  • namely
  • to illustrate
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