Question

In: Economics

Outline the association between back office functions and economic geography.

Outline the association between back office functions and economic geography.

Solutions

Expert Solution

Back office functions are the functions in the organization that support the primary activities of the organization and other functions that involve more interaction with the customers. It is the responsibility of the back office function to complement the front end functions of the organization. Increase of back office functions and related activities, is the indicator of the expansion of the economic activities and economic geography expands. It makes economic activities to increase and more demand and increase in supply to complement the demand, also takes place. Due to this reason, back office work increases.  It means that there is a direct and positive relationship between  back office operations and the economic geography. For example, accounting function as a back office function, now estimates more taxes to be paid by the organization. It means that organization has earned more money and paying more taxes. Hence, economy is expanding and economic geography is also moving outward.


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