(i) To reduce rural-urban migration. Setting up firms in several parts of the country may curb the influx of people from rural to urban areas. This helps to retain the productive population in the rural areas.
(ii) To utilize local resources/factors of production/untapped resources. Establishing firms in various parts of the country will enhance the use of idle resources in those areas.
(iii) To create employment opportunities. This is a sure Way of creating employment opportunities in several parts of the country which improves the standard of living.
(iv) To provide balanced regional development. Creating firms in various parts of the country will ensure that all parts grow/ develop at the same rate/time.
(v) To promote development of infrastructure. Setting up of firms will encourage the growth of infrastructure like roads, power, water, railway and communication in various parts of the country Which opens up the country and facilitates production/movement of goods/services/factors.
(vi) To promote development of social amenities / schools/ health facilities. When firms are set up in various parts of the country, social amenities Will also be developed. This improves the social welfare of the people.
(vii) To reduce social problems hence avoiding/minimizing pollution/crime/ prostitution/drug abuse/theft.
(viii) To promote urban growth hence encouraging growth of market/economy/ commercial activities.
(ix) To reduce congestion in certain areas in order to ease pressure on resources.
(X) To reduce effects of concentrated pollution which may negatively affect the environment.
(Xi) To minimize effects/impact of calamities/terrorism/catastrophe which may polarize the economy.
(xii) To reduce income disparities/inequalities as people will be engaged in production activities.
lemass answered the question on February 14, 2019 at 16:19
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