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?

The shift of major multinationals from metro
cities
to rural
areas
is thought by some people to be a good decision for companies. In my opinion, I think that moving from urban
areas
to regional
areas
can bring more problems for MNCs compared to any advantages it might bring. Admittedly, there are some basic benefits to companies for leaving
cities
.
Firstly
, these brands can enjoy gains in profits as
this
shift helps them to cost-cutting. Not only businesses can hire cheap labour but they
also
pay less for expenses like electricity and rent.
Secondly
, they can build bigger plants in these regional
areas
which can lead to more profit.
For instance
, big production plants can facilitate the manufacturing of more products,
hence
, more profit. Escaping metro
cities
,
furthermore
, is advantageous, if product-based companies strategically plan to move considering all crucial factors.
Nevertheless
, despite the advantages above,
i
Change the capitalization
I
show examples
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
.
This
is a concern as most of the top universities are situated in tier 1/2
cities
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
.
Hence
this
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.
Submitted by mndps97 on

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