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?

One of the main strategies implemented by the governments to solve the housing and transportation problems in the

city

is the policy that advises businesses to

move

to suburban

areas

.

However

,

this

method has some advantages

as well as

drawbacks. First of all, many distant

areas

, where the prices for rent may be lower than in the cities, are not ,

however

, popular among the community to

move

for a reason that they are not

lively

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likely

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due to

the fact that they do not have enough services to offer. To reduce

such

negative developments, it is crucial to encourage businesses to open their offices or stores in

such

areas

to attract the population, and,

therefore

, solve the housing problem, since people are finding those

areas

more attractive

in addition

to the existing low rent prices. When comes to transport, when more people are going to

move

to a new neighbourhood, local authorities will have a reason to develop and expand the local transportation networks to connect the area with the

city

centre. Despite all the positive effects the policy may cause, it has some significant drawbacks, that should be taken into consideration.

For instance

, moving businesses far away from the

city

centre

,

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may directly affect their income, since the amount of customers will automatically drop, since big and busy

areas

in the

city

create more potential to expand the customer base.

In addition

, some of the loyal customers may not be willing to continue using the services anymore if they

move

far away from the previous area. The transit costs may dramatically increase since the travelling distance to distant neighbourhoods will increase.

This

may create isolation of the

areas

.

Moreover

, suburban

areas

can be seen as dangerous places to live, which does cause negative associations

thus

affecting folk's willingness to

move

.

To conclude

, that kind of business policy may have some positive effects

such

as attracting the nation to

move

to suburban

areas

,

however

, it

also

has some drawbacks. These include the reduction of customers, which affects the profits

as well as

creates higher prices for transportation.