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What would be the effects of a large-scale business expansion in the area where you live?

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What would be the effects of a large-scale business expansion in the area where you live? BAA is proposing to build a gigantic new terminal near Heathrow, which will be called Terminal 5. This would be the biggest structure ever built on Green Belt land. It will involve a huge amount of building work and adding to the already huge Heathrow airport. This has caused mixed feelings amongst environmentalist groups, local residents and other stakeholders. The New Terminal 5 would cause negative externalities e.g. major increase in traffic, congestion, noise, air pollution, health risks and danger. But also positive externalities e.g. more tourism, more jobs created, more flights means less of a weight for a flight and will be a boost for the local economy. There will be many stakeholders involved in the expansion of the airport. Stakeholders are the people who have an interest in the business or are affected by business. The Airport Authority will benefit from terminal 5 because of economies of scale. ...read more.


This will have a big impact on the local economy. The workers in the area will be a positive externality as Heathrow brings many jobs for local people. It is one of the UK's largest employers, with an estimated 68,000 people employed directly at the airport. In total 108,000 jobs are provided for the local area dependent upon the airport. Indirect and induced employment is believed to add further employment of around 245,000 across the UK. Terminal 5 will generate or safeguard around 16,500 jobs plus create some 6,000-construction jobs. There will also be greater traffic congestion with more people trying to get to the airport so they will have to build more roads to spread out the congestion. This would have a negative affect on the local community and will also take up more Green Belt land. Workers in the area will benefit from the expansion, as there will be a huge amount of jobs on offer in construction, retailing and other areas. ...read more.


Throughout this investigation I have found that there are a lot of negative and positive externalities. If Terminal 5 is built it will have a huge impact on the local economy and a lot more money will be brought into the country. This is a good thing that people will benefit from when the terminal is built they are now supporting the development. The Friends Of the Earth Group thinks that this expansion could end up spiraling out of control, as an extra terminal would force an extra runway, which would mean more expansion. The greater demand for flights will make greater traffic congestion, which will force the M25 to be widened and maybe even force the government to build a new motorway. This could be the destruction of the green belt land and have too many negative environmental factors. I personally think that the positive externalities do outweigh the negative and the local residents who live near Heathrow knew when they moved there that it was right by the airport and so they should be supportive of the plans to expand. ...read more.

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