Causes and Consequences of the International Relocation of Polluting Industries.

Nowadays, many wealthy countries are privileged to have plenty of famous world wide branded products. Many industries who produce those products usually allocate their production to another country, usually less developed one. One of the main reasons is that such industries usually pay less by doing so. However, they pollute a lot and might have to pay taxes for it (eg. USA) in their own country so they decide to move out and produce it where it is cheaper. International reallocation of polluting industries has its own benefits, but also drawbacks to both countries of origin and countries where industries are moved to.

The main causes of the reallocation of polluting industries are high taxes on pollution and expansive labor in the country of origin so industries move to LEDS such as Malaysia or Bangladesh to produce their products. This might be good for the origin country since the costs of producing the good will be cheaper and they could produce more. Also, origin country can benefit from not damaging their environment and preserve the nature locally. But also, the reasons of allocating industries are that a country does not have a good political or economic base for continuing operating. Therefore, consequentially, they could develop their business outside and by revenues gained, develop their own country. People in the LEDC countries might also be better off since they get more jobs, and wages with could support their family living.

There are also bad consequences of relocation of such industries, mostly for countries where the industry has been moved into. Industries pollute the environment by cheaply managing their waste (oil) or simply by releasing lots of CO2. Many environmental habitats could be therefore destroyed, eg. The amount of fish could decrease if the industry spills the oil waste in the river. Polluting is happening because there are no controls, and industries have to pay way less for their waste disposals.

In one hand, relocation of polluting industries might be good for the countries of origin since they have to pay less for their production of the better amount of goods, and they don’t pollute their own environment. Also, they could possibly develop their country by revenues gained and investing in eg. infrastructure. Many jobs are created, but for cheap price. In the other, hand by reallocating those industries, recipient countries suffer from environmental damage and exploitation of cheap work force.