The Transportation Industry Does Not Have A Great Impact On The Economy Of Arizona

1130 Words Sep 20th, 2016 5 Pages
Transportation is an important sector that drives economic activities within and outside the state. Although transportation as a sector does not bring in significant revenues to the economy of Arizona, it does assist the smooth operation of other industries such as manufacturing, tourism, agriculture and mining. Without roads, rail, and airports, it would be difficult to move goods and services from one part of Arizona to another. Arizona’s transportation industry does not have a great impact on its economy because the state is largely used as a transit hub. More than half of the freight that comes into Arizona originated from outside, rests for some few days and moved to their destinations in other states. This means that the Arizona state government can only gain relatively small revenues from the freight may be in the form of storage charges, repackaging, and accommodation for truck drivers. The remaining 50% of freight is intra-state implying that no money is brought in from outside Arizona. Transportation sector acts as a vital factor in attracting investors because modern businesses critically examine the transport infrastructure before deciding whether to relocate or not. For instance, manufacturing companies depend on well-established road and rail network to move large volumes of bulk freight. Some also rely on the trucking to move containerized freight on highways with low congestion levels.

Question 2
Arizona depends on the international trade for economic…
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