Question
7. Many large corporations are tearing down their inner city factories and building new factories in the suburbs. List a few reasons why this action is profitable. __
Solution
4.1
(216 Votes)
Ulric
Professional ยท Tutor for 6 years
Answer
###Lower labor costs, lower land and property taxes, access to larger land parcels, improved transportation and logistics, and access to a different labor pool.
Explanation
##Step 1: Reduced Labor Costs###Corporations may find lower wages and fewer unionization pressures in the suburbs, leading to reduced labor costs.##Step 2: Lower Land and Property Taxes###Suburban areas often offer lower land prices and property taxes compared to inner cities, reducing operating expenses.##Step 3: Access to Larger Land Parcels###Suburbs provide access to larger land parcels, allowing for more efficient factory layouts and potential expansion.##Step 4: Improved Transportation and Logistics###Suburban locations often offer better access to highways and transportation networks, streamlining logistics and distribution.##Step 5: Access to a Different Labor Pool###Relocating to the suburbs allows corporations to tap into a different labor pool with potentially different skill sets or demographics.#