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
Expert Verified
4.1(216 Voting)
UlricProfessional · 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.
Explain
##Step 1: Reduced Labor Costs<br />###Corporations may find lower wages and fewer unionization pressures in the suburbs, leading to reduced labor costs.<br /><br />##Step 2: Lower Land and Property Taxes<br />###Suburban areas often offer lower land prices and property taxes compared to inner cities, reducing operating expenses.<br /><br />##Step 3: Access to Larger Land Parcels<br />###Suburbs provide access to larger land parcels, allowing for more efficient factory layouts and potential expansion.<br /><br />##Step 4: Improved Transportation and Logistics<br />###Suburban locations often offer better access to highways and transportation networks, streamlining logistics and distribution.<br /><br />##Step 5: Access to a Different Labor Pool<br />###Relocating to the suburbs allows corporations to tap into a different labor pool with potentially different skill sets or demographics.<br /><br />#
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