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13 March, 06:18

A company shuts down a manufacturing site in a city to relocate to a lower-wage region. How does the company's decision impact the city?

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  1. 13 March, 06:33
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    See explanation below.

    Explanation:

    Shutting down a manufacturing site in a city can be devastating to the workers who depend on the job for their livelihood. This is even more serious when the manufacturing site is the major employer in the city.

    When a manufacturing site chooses to shut down, it can have the following impacts on the city:

    1. Unemployment: this is because most of the workers will be laid off by the manufacturing site as they relocate.

    2. Emigration: this is because people will try to look for jobs elsewhere, therefore they will leave the city.

    3. Reduction in taxes: taxes will definitely be affected, because the people who have lost their jobs now have no income that taxes can be levied on.
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