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

Authors Avatar

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. This is where the average cost of production may fall as the output increases. They will benefit from form the new terminal because there will be a new run way which will mean more flights and more landing fees, more shops, more people going through the airport so more people spending money in the airport.  

Join now!

The airlines benefit because there will be more flights for them so they get more money form the sales of tickets.

Retailers in the airport will benefit from the expansion as there will be more room for outlets and they can sell their goods to more customers. This is definitely a good point because if terminal five does go ahead there will be more retail outlets than in the local shopping centre in Staines. BAA makes more money from the retail outlets than it does from air travel. Some friends of the earth groups believe that Terminal five may be an ...

This is a preview of the whole essay