What is one advantage of locating the factory near major urban areas?

• A. Urban areas may provide more e-waste, labor, infrastructure, and transport links.
• B. Urban locations always reduce regulatory hurdles.
• C. Urban sites have lower land costs than rural sites in all cases.
• D. Urban areas are rarely connected to transport networks.

Answer: (A)

Locating a factory near major urban areas provides access to a large pool of potential workers, well-developed infrastructure, and reliable transport links. A bigger labor market makes it easier to recruit staff with the right skills, while strong infrastructure—utilities, communications, and services—keeps daily operations smooth and costs predictable. Transport networks in cities support efficient inbound receipt of raw materials and outbound distribution of finished products, reducing lead times and logistics costs.

In the electronics or recycling context, urban areas also generate substantial e-waste streams, creating opportunities for sourcing materials or establishing efficient reverse logistics.

The other statements don’t hold as general advantages: regulatory hurdles aren’t inherently lower in cities, land costs are typically higher in urban areas, and cities are usually well connected to transport networks rather than rarely connected.