Why do governments encourage new businesses to locate in urban enterpr

QUESTION

Why do governments encourage new businesses to locate in urban enterprise zones?

What will be an ideal response?

ANSWER

Answer: Urban enterprise zones are located in economically distressed areas in industrial or commercial parts of cities. By drawing new business into enterprise zones, governments hope to revitalize the areas.
Explanation: Governments offer a variety of tax credits and other incentives to encourage businesses to locate in enterprise zones. The governments hope to benefit from tax revenues and jobs that the businesses will create.