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Maru [420]
3 years ago
12

Which statements describe the effects that are likely to occur when a major business closes or moves out of an area?

Geography
2 answers:
Arlecino [84]3 years ago
7 0

i think the answer is Population in the area will decrease, and Revenue collected through taxation will decrease. i hope this helps

ycow [4]3 years ago
5 0

Answer:

When a major business closes or moves out of an area, the following effects are likely to occur:

-Service industries lose business and shut down

This happens because, by closing the source of work for many people, they tend to consume less services, with the aim of taking care of their savings. There is thus a recession in the local sphere, which drags other companies and businesses in the area into the crisis.

-Population in the area will decrease

The population, due to lack of work, begins to look for other places to live, where there are job opportunities or a more economically accessible life. This causes the area to begin to depopulate.

-Revenue collected through taxation will decrease

Due to the lack of income of the population, the government collects less taxes, since people do not pay revenue taxes or value-added taxes on consumption.

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