Agglomeration economies refers to the benefits received by the firms and people when they come together to make use of the advantages offered by the urban cities that prove helpful to them. It provides a firm with equity ownership rights and management control rights. For more information on the benefits of agglomeration, download our e-book, or contact us today! The main objective in agglomerating fines being the conversion of ores, minerals and chemicals of undesirable fineness into agglomerates characterised by a size consistency desirable for subsequent use or processing. To some extent this is surely true: America has the worlds best universities, and many of the best schools, excellent nutrition, and pretty good environmental quality. When firms form clusters of economic activity, there are particular development strategies that flow in and throughout this area of economic activity. Ownership advantages stem from agglomeration. \text{Retained earnings} & \text{57.605} & \text{38.774}\\ It can issue debt at $r_{d}=11 \%$, and its common stock currently pays a $2.00 dividend per share [math]\left(\mathrm{D}_{0}=\$ 2.00\right)[/math]. That leads to lower wages and incomes, and a poorer world for everyone. Agglomeration economies are a powerful force that helps explain the advantages of the "clustering effect" of many activities ranging from retailing to transport terminals. However, this was when housing was abundant, and cost about as much to rent or buy as it did to build. Foreign direct investment (FDI) stock is the total accumulation of inbound FDI in a country or outbound FDI from a country. We've compiled ten undeniable reasons why STEM benefits students. Agglomeration economies are the external benefits firms receive from co-location. According to the two famous studies Hsieh & Moretti and Duranton & Puga New York City would grow by tens of millions of people if allowed to,continuing the breakneck growth seen from 1800 to the mid twentieth century. If a country's interest rate is high relative to other countries, the country will: 4. Companies have a wide variety of choices when recruiting as the best specialists of industry tend to move to the agglomerated region.. It provides a firm with equity ownership rights and management control rights. Astonishingly, they have data covering some 95% of the private firm employees in the USA from 2010 to 2018. In licensing, a firm that receives explicit knowledge is not likely to succeed because: b. tacit knowledge is difficult to transfer and can be acquired only by practice. and McCann, 2000). they have nicer weather, better restaurants, and so on, to explain this otherwise puzzling result. _____ refers to the domestic diffusion of foreign technical knowledge and processes. If this is true, then small observed agglomeration benefits may just be an outcome of our system, which isnt allowing any of the most productive possible agglomerations to evolve. STEM (science, technology, engineering and mathematics) 100%. ). In practice, few can satisfy the requirements, invest the time, and spend the money necessary, with the highest skilled most capable of overcoming those hurdles. Another is assuming that regulatory constraints on housing, though they exist, are equal between cities. At its core, agglomeration's underlying theory is that businesses and resources can take advantage of a number of efficiencies by being located close to one another. According to the two famous studies . B : Ownership advantages stem from agglomeration. It involves locating and operating in host countries. But this story is mistaken, for a few key reasons. Not every person with STEM qualifications, however, finds employment in a STEM jo. As mentioned above, the results of Card's paper have been taken by some to mean that this is untrue, and that movement would actually not raise anyones wages much. Besides, located close to the southern region of the continent, it attracts business from the neighboring continents as well. undertaking additional FDI in a host country to: 9. 1. A recent study by some top economists suggests that wage differences between cities are primarily driven by skill differences. The international trade between two subsidiaries in two countries controlled by the same multinational enterprise (MNE) is called _____. The free market view on foreign direct investment (FDI): leads to a win-win situation for both home and host countries. How is strategy as action is best defined? This action was quite native and fit for him. //]]>, Agglomeration Samples from The Innovation Center. In general, agglomerating a material can offer many benefits, including: End product benefits - dust-free product handling, and improved product characteristics. Experimental results in the economic literature find a similar thing. Rating 64%. This process may help to urbanize areas as well. The first relates to the costs for employers to move city, and the collective action problems in doing so. Please. 2. SEM images of the PLGA/Fibrin/Pom. This adds a further complication to how we should interpret the papers findings. (Marshall, 1920) arguments in favour of the agglomeration advantages of major industrial centres (Gordon and McCann, 2000). In the context of international investment, foreign portfolio investment (FPI) is an indirect investment. Foreign direct investment (FDI) results in the loss of some economic sovereignty in a host country. In this scenario, Picnia Corp. has engaged in: In the context of international business, market failure is most likely to result due to: Folexa is the largest producer of spices in the world, and its location is an added advantage to its business. In licensing, a firm that receives explicit knowledge is not likely to succeed because: tacit knowledge is difficult to transfer and can be acquired only by practice. In the long run, the interests of multinational enterprises (MNEs) in host countries can be best safeguarded if MNEs neglect the interests of host countries. Consider how strange the full skill story would be. Improved End-User Experience: Your customers will notice the benefits of using agglomerated granules over powders, including easier solubility, product appearance, enhanced . by some top economists suggests that wage differences between cities are primarily driven by skill differences. Skill is the dominant factor. Agglomeration is a process stage to be carried out after the material is sorted into a fairly homogeneous stream. Agglomeration economies exist when production is cheaper because of this clustering of economic activity. At times, there has been a lottery in New Zealand to select which Tongans are allowed to migrate there. In the trade relationship with China, why is the US dollar in more demand than the, 2. observe in their data that real wages, i.e. The company expands its business in Cronje Republic to gain the . As two important dimensions of foreign entry strategy, entry timing and location . 2. For example, it is important in increasing the particle size of food powders. This process may help to urbanize areas as well. A non-multinational enterprise (non-MNE) firm can do business abroad by exporting. Internalization is a way to combat market failure. d. Decisions to produce and market products and services in a host country are being made by foreigners resulting in a loss of sovereignty. With the establishment of a firm, there is always a fixed or average cost of production for the firm based on supplies needed (labor, capital, rent etc.) Knowledge that can be written down and transferred without losing much of its richness is called _____. It gathers a labor force that is larger, more specialized, and . 2. $$ \begin{matrix} There are no legal immigration restrictions between cities. This line of reasoning provides an avenue to use the economic mechanisms described in agglomeration theory to analyze the effects . It is surrounded by six trading countries. Incoming Associate Consultant Intern at Bain & Company | Junior at the Wharton School - University of Pennsylvania. Agglomeration can cause positive impacts for a variety of reasons, including knowledge spillovers, efficient allocation of infrastructure, proximity to customers, and a better matching of job opportunities and skills between firms and workers. While entry timing literatures suggest firms to enter a foreign market as pioneers to gain the first mover advantages, studies on entry locations recommend firms to enter a market where there is already a critical mass of their peers, i.e., to be late movers in order to benefit from the agglomeration effects. Also, it is helpful in reducing dust generation, improving powder properties in bulk, improved wettability and solubility, etc. Knowledge spillovers among closely located firms that attempt to hire individuals from competitors. Firms can beat rivals abroad by acquiring the advantage of proprietary technology of manufacturing products. When used prior to agglomeration, drying prepares material feedstock for agglomerate formation, and has a direct effect on how material will perform during agglomeration. In a competitive market, the price of something is driven by the cost of producing another one of that thing (plus a small profit margin). And that was despite the absence of housing restrictions! 3. The debate is basically about a thing called agglomeration benefits. In fact, as suggested above, we can take most of Card et als model seriously and still think that we could generate large income and welfare gains by enabling people to move city (e.g. They suggest that any gaps in rents they observe between cities are driven by some cities being nicer to live in than others e.g. Low skilled workers do not move or sort much between cities because of the effective movement barriers housing costs documented in the paper. High productivity companies tend to have sophisticated management structures, enough resources to afford nice offices, and processes that ensure there arent crises like workers not being paid on time. If the opposite were the case, firms would disperse to places with lower costs. Course Hero is not sponsored or endorsed by any college or university. The first two of these hypotheses stem from the well known product cycle model of Vernon (1966), while the third stems from the Alchian (1957) . In general, agglomerating a material can offer many benefits, including: Various agglomeration techniques are available, and allow manufacturers to tailor a process to the exact needs of their material. b. c.The idea that governments should actively protect domestic industries from imports and vigorously promote exports. In this case, Hisson Technologies was engaged in _____. Disadvantages of agglomeration Although agglomerate economies boost the economy, they can also have a detrimental effect in the following ways : Environmental effect: clusters of business activity in metro cities contribute significantly to pollution, traffic, and other externalities that occur by clustering of a population of firms. Which of the following political views on foreign direct investment (FDI) does not exist in practice? Government and societal forces. Implicitly, these people are saying, janitors in New York City and San Francisco are earning their higher wages by being harder-working, more motivated, and possibly smarter janitors in many cases they may be immigrants who did higher skilled but worse paid jobs back home. Therefore, this evidence provides us with our second observation concerning . This debate matters because a range of other evidence suggests that, are substantially driven by constraints put on internal migration expensive housing in destination cities. It has recently engaged in foreign direct investment (FDI), setting up its manufacturing units in three other countries. b. appears to contradict this story. One possibility is that people in America or at a company like Microsoft are just more skilled than people in a corner shop in Britain, or Mexico. In theory, if external benefits are greater than the added costs of higher rents, wages, and transport costs that agglomeration generates, there would be geographic clustering. Which of the following statements is true of agglomeration? How can we tell which effect predominates? Foreign direct investment (FDI) results in the loss of some economic sovereignty in a host country. But Card, Rothstein, and Yi appears to contradict this story. Ownership advantages stem from agglomeration. The debate is basically about a thing called agglomeration benefits. b. The term economies of agglomeration is used in urban economics to describe the benefits that firms obtain when locating near each other ('agglomerating'). A United States MNE decides to move operations to a developing nation in Central America to take advantage of the region's low labor costs. And thus its still clear that there is a huge prize to coming up with a politically acceptable zoning system that permits more homes in the key locations. One assumption that underlies the anti-agglomeration interpretation of the Card findings is that employers companies will move to where they can buy a given amount of labour productivity the most cheaply. The methodology also effectively assumes that all possible combinations of industry-location and worker exist. a. a. This is clearly broadly true. \text{Common stock} & \text{100.000} & \text{90.000}\\ This concept relates to the idea of economies of scale and network effects. \text{Total assets} & \text{\$ 311.824} & \text{\$ 252.670}\\ Then on the flipside there will be thousands of cases where the same worker works at different industries in the same, or in different cities, over time. Question 16 1 pts In licensing, a firm that receives explicit knowledge is not likely to succeed because: Agglomeration advantages stem from knowledge spillover from one firm to another. \text{Long-term debt} & \text{76.264} & \text{63.914}\\ What is a resource-based strategy concerned with ? It is hard for any one firm or individual to shift the location of economic activity. What are the advantages of agglomeration economies? In the context of international business, market failure is most likely to result due to: When market failure is minimized through internalization, _____. Rayato Inc. has decided to follow the same value-chain stage in the host countries as in Swinland. Bricklanes Inc. is a company that designs and manufactures materials for interior decorations. Spread the loveSTEM education in the U.S. is increasing in popularitymore schools are implementing STEM learning into their curriculum and making it an integral part of what they teach. What effect would this have on taxes paid by the companys shareholders? Picnia Corp., a leading automobile manufacturing company, assembles its cars in Deltaland, but the components are manufactured in Ristasia. Which of the following political views is hostile to foreign direct investment (FDI)? \text{ } & \text{2016} & \text{2015}\\ Which of the following statements is true of direct ownership? Foreign direct investment (FDI) results in the loss of some economic sovereignty in a host country. When one firm enters a foreign country through FDI its rivals are likely to follow by undertaking additional FDI in a host country to: Before we look at the paper, though, lets look more broadly. This was true in both nominal terms, and after adjusting for differences in housing prices. This creates a selection effect that drives firms in a particular industry out of business if they are in cities where that industry is less productive. By contrast ninety percent of American workers earn more than $560 per week. The workers are there, the clients are there, the investors are there. A non-multinational enterprise (non-MNE) firm can do business abroad by exporting. Foreign direct investment (FDI) stock is the total accumulation of inbound FDI in a country or outbound FDI from a country. In this scenario, Citronix Inc. is engaged in _____. , even after the pattern was inefficient as it gave them poorer access to navigable waterways than, say, Britain. Hook Industriess capital structure consists solely of debt and common equity. The stock's price is currently$24.75, its dividend is expected to grow at a constant rate of 7% per year, its tax rate is 35%, and its WACC is 13.95%. How can we tell which effect predominates? b. a. The _____ is a political view that approves foreign direct investment (FDI) only when its benefits outweigh its costs. Agglomeration Theory and Process. Goods and services are more mobile than workers. In its venture to expand business, the company sets up manufacturing units in five other countries where semiconductors are produced and manufactured. They cant unilaterally decide to move without losing out on all of those benefits, and it would be difficult for all the industries in New York to simultaneously agree to relocate to somewhere with unlimited housing supply. Another possibility is that American institutions and companies are better. Which of the following is NOT an economic benefit of global economic integration? Technology spillover from FDI is typically beneficial to domestic firms and industries. Housing restrictions make it unattractively expensive to move across cities in the USA, but the trade in goods and services across the country makes it quite easy for consumers or companies to switch the companies consumers or firms choose to buy from. Agglomeration advantages stem from:a. $$ Most countries embrace the free market view on FDI. It finds most application in waste plastics with film flake, which can . C : Agglomeration deprives a firm from enjoying ownership advantages. Stringent housing restrictions are preventing really large agglomerations from emerging at all in the USA. Some cities just have higher productivity, most likely because of the people who are already there. Sales for 2016 were $455,150,000, and EBITDA was 15% of sales. If it were nicer to live in one city than another, we would expect more and more housing to be built there, to enable lots of people to move there, until it became more and more expensive to build more homes. agglomeration economy heterogeneity allows us to predict when various firms might be more or less attracted to a particular agglomeration economy. Each worker will have a trajectory over the years going through different industries in different cities. Through most of the twentieth century, both janitors and lawyers earned considerably more in the tri-state New York area (NY, NJ, CT) than their colleagues in the Deep South (AL, AR, GA, MS, SC). But while they do find that people earn more when working for the highest productivity industries and living in the highest productivity cities, these two factors together only seem to account for half as much wage variation as the wage variation driven by the skills of the employee in question. These benefits are often measured in productivity and growth. Agglomeration advantages stem from knowledge spillover from one firm to another. Its certainly true in history that some firms have done just this: manufacturers created their own company towns so they could minimise other costs and get as much productivity for the wages they pay as possible, and theyd try to locate these where labour was cheapest. Fig. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. As a result, comparing productivity across cities on a per-industry basis will tend to understate the productivity differences between cities. The second issue lies with the way housing costs and amenities vary between cities. Benefits derived from the agglomeration of population, namely common infrastructures . Agglomeration advantages stem from: a. Why Card, Rothstein, and Yi dont disprove agglomeration benefits. In surveys, nearly a billion people say theyd like to move to the USA. The cost of housing and intranational income differences. by Peter Ganong and Daniel Shoag (which I wrote about. Their paper cannot really be deployed in favour of the case against the wage benefits to moving to a different city, since it manifestly shows substantial effects of doing so. There are also more subtle problems with the paper. . This debate matters because a range of other evidence suggests that regional inequality, slow productivity growth, and various other problems are substantially driven by constraints put on internal migration expensive housing in destination cities. The company expands its business in Cronje Republic to gain the advantages of foreign direct investment. Agglomeration, the process of particle size enlargement, is used to solve material problems and improve product characteristics. 3. This, I believe, is the misunderstanding that readers of Card, Rothstein, and Yi have fallen into. A paper company is opening a new branch. This helps to accumulate information and the flow of new and innovative ideas among firms for the achievement of what economists call increasing returns to scale. a. Folexa is the largest producer of spices in the world, and its location is an added advantage to its business. For example, the data entry for me would include 2022, Technology; 2021, Think tanks, and so on through the years in the data. When this average cost of production falls as the result of the increased total output of a product, that indicates the presence of economies of scale; the terms "increasing returns to scale" and "economies of scale" may be used interchangeably. 1991b) where agglomeration economies merely improve with the number of firms concentrated in a geographic location. So, Bandoy Corp. sold its technology to several multinational enterprises in other countries. d. If Laiho increased its dividend payout ratio, what effect would this have on corporate taxes paid? There was a good agreement in terms of the nanoparticles size between these two methods, showing that the nanoparticles were properly dispersed and no agglomeration had occurred (Fig. The build quality of FEECOs equipment is top notch, heavy duty, and has run with no issues in our continuous operating facility. George Handler Nestl Purina, Bulk Material Handling Equipment & Systems, Organic Fertilizer Processing Equipment & Systems, Inorganic Fertilizer Processing Equipment & Systems, Specialty Fertilizer and Soil Amendment Processing Equipment. A multinational enterprise (MNE), by definition, is a firm that engages in foreign direct investment when doing business abroad. And Card et al observe huge nominal wage differentials just like this for all sorts of lower-skilled jobs like McDonalds staff! The problem with taking this inference from their paper that there would be minimal productivity benefits from making it easier for people to move around the country to find better jobs is that even within their paper some third of the variation of income between cities is driven by industry and location themselves. What are the key factors on which external financing depends, as indicated in the AFN equation? It is hard for any one firm or individual to shift the location of economic activity. It is not well-known that STEM education encourages creativity, curiosity, problem-solving, critical thinking, leadership, decision-making, acceptance of failure and entrepreneurship. And thus its still clear that there is a. to coming up with a politically acceptable zoning system that permits more homes in the key locations. Cities are equated to pure agglomerations of firms; territory is downscaled to physical distance or geometric space. The result is more sorting of the highly skilled to rich countries like the USA, with those less skilled remaining in their country of birth. Some commentators have used this to argue that there would only be small gains from allowing many more homes to be built in the most productive cities, because people are already being paid mostly based on their skill, not their location. arguments in favour of the agglomeration advantages of major industrial centres (Gordon. \text{Total liabilities and equity} & \text{\$ 311.824} & \text{\$ 252.670}\\ Which of the following political views on foreign direct investment (FDI) does not exist in practice? Between the 1950s and the early 1980s, the radical view was influential throughout: 10. But many do not because in a national market, they would be driven out of business. Knowledge spillovers among closely located firms that attempt to hire individuals from, b. But these cities have abundant housing by big city standards, with minimal gaps between the cost of constructing housing and the cost of buying or occupying it. Research output: Contribution to journal Conference article peer-review. Agglomeration allows you to label the product as dust-free or more soluble, giving the perception of a high-value product that you can sell at a higher price point. A. By contrast ninety percent of American workers. What is the law of one price, where the price for identical products in different. But these cities have, by big city standards, with minimal gaps between the cost of constructing housing and the cost of buying or occupying it. true. This method controls for individual differences, like the amount people have invested into skills. If housing costs are higher in one place than another, then even if wages and productivity are also higher, it may not make sense for an individual to move. Where the difference is the greatest disadvantage, many of those firms will already have gone bust. for the production of the firm. It is important to note that these increasing returns to scale are a major contributing factor to the growth of cities. _____ is defined as the possibility of unauthorized diffusion of firm-specific know-how. a. Where does the International Monetary Fund receive its funds? HR Industries (HRI) has a beta of 1.6; LR Industriess (LRI) beta is 0.8. But the Card team take this to show that each industry already has the optimal current set of employees (given the underlying level of amenities in each city) else the employer would move city. In the context of international investment, foreign portfolio investment (FPI) is an indirect investment. Assuming a Nigerian worker at the lower end of the skill distribution could do a job at the low end of the American skill distribution, this implies most of the difference between these countries is not due to differences in individuals skills. 1 For example, Rosenthal and Strange (2001) examine differences in extent of agglomeration in U.S. manufacturing Agglomeration deprives a firm from enjoying ownership advantages. This sounds an awful lot like the immigration story, with housing shortages playing the role of immigration restrictions though of course the gaps are much smaller, because Alabama is still a whole lot richer than Nigeria. Correct Answer : A a. \end{matrix} This method controls for individual differences, like the amount people have invested into skills. of all the buildings in Manhattan that would be illegal to build today. If housing costs are higher in one place than another, then even if wages and productivity are also higher, it may not make sense for an individual to move. Stringent housing restrictions are preventing really large agglomerations from emerging at all in the USA. Get access to all 961 pages and additional benefits: A counterattack in response to attacks requires what ? From an institution based view, internalization is a response to: Which of the following statements is true of internalization? While delineating the connection between transportation accessibility and economic activity has long been a topic of interest in geography and regional science, a better understanding of the agglomerative benefits of transportation systems is vital. Its certainly true that the impact of pure city size is low in their model as compared to previous research which failed to control for worker skill as thoroughly. The process offers a myriad of advantages, many of which are becoming more and more relevant in today's global market as products become more specialized and producers look to tighten control over particle . d. Governments embracing this view often nationalize multinational enterprise (MNE) assets or simply ban inbound MNEs. Migration responded to these differences, and this labor reallocation reduced income gaps over time. b.The economic advantage one nation enjoys that is absolutely superior to other nations. In this scenario, Picnia Corp. has engaged in: Hisson Technologies, a computer manufacturing company headquartered in Lumberne, had recently undertaken foreign direct investment (FDI) by setting up its office in the Remfur Republic. Which of the following statements is true of direct ownership? The theory of absolute advantage is: a.The idea that free market forces should determine how much to trade with little government intervention. Color 43% . in their superstar cities, even though wages are higher. Agglomeration economies may be external to a firm but internal to a region. But there are other things that constrain movement, such as housing costs: rents and house prices. That means the differences between cities will look smaller by comparison with the variation in skills of the workers. Figure 1. Agglomeration deprives a firm from enjoying ownership advantages. The free market view on foreign direct investment (FDI): a. leads to a win-win situation for both home and host countries. Experts are tested by Chegg as specialists in their subject area. \text{Total current liabilities} & \text{\$ 77.955} & \text{\$ 59.982}\\ countries should be the same if trade barriers are absent? This scenario represents which risk of licensing? or youre not sure where to start, we can help. As mentioned above, the results of Card's paper have been taken by some to mean that this is untrue, and that movement would actually. Evaluation 64%. Though costs are higher in superstar cities, the majority of the gap is down to a larger wedge between costs and prices, which indicates that the gap is down to zoning or planning restrictions a pure scarcity of housing. Experimental results in the economic literature find a similar thing. Astonishingly, they have data covering some 95% of the private firm employees in the USA from 2010 to 2018. On a larger scale they are the benefits that people get when they all live in the same city and have a huge pool of people to buy from, sell to, and work with. Second, this intuition applies for higher skilled workers too. Lawyers continue to earn much more in the New York area in both nominal terms and net of housing costs, but janitors now earn less in the New York area after subtracting housing costs than they do in the Deep South. For example, the lowest-paid Nigerians in formal work get, . Some commentators have used this to argue that there would only be small gains from allowing many more homes to be built in the most productive cities, because people are already being paid mostly based on their skill, not their location. To move all of these people at the same time, we would have to perform extraordinary feats of coordination, so they tend to persist. The most (in)famous loophole in merchandise trade created through GATT was: 4. The choice to agglomerate material is common in a wide range of industries, from agriculture to mining and even specialty chemicals. If this is true, then how else could we make amenities vary so perfectly with rents/house prices? B. By and large, this increase in housebuilding costs, which would fit the higher rents means nicer city story, is not what we see. 9. a. A country experiencing a current account surplus will see its currency _____, while a. country experiencing a current account deficit will see its currency _____. Home replication strategy B. Multi-domestic strategy C. Global Strategy D. Transnational strategy, What does the resource-based view focus on? This market entry mode is an example of _____. America has a deeply-established rule of law, a well designed tax system, and high social trust. Besides, located close to the southern region of the continent, it attracts business from the neighboring . New Zealand today has a GDP per capita around ten times Tongas; at the time of, it was just over five times Tongas. The consequence is that agglomeration advantages stem only from mere input-output relationships among clustered firms, leaving no space for the wider urban context to influence urban performance. The Today, though nominal premiums to being in the New York area are large for these two occupations, the high costs of housing in the New York area have changed this calculus. Which of the following is NOT one of the components of the balance of payments? On a small scale, they are the benefits to productivity that members of one company enjoy when they are all in the office together. New Zealand today has a GDP per capita around ten times Tongas; at the time of this 2010 paper it was just over five times Tongas. No one who knew him would tax him with affectation. f. Assume that the firms stock price is $22 per share and that at year-end 2016 the firm has 10 million shares outstanding. In both applications, drying is vital . Agglomeration is very important in some processes. use the term earnings capacity). This paper sets out to examine whether the effects of locating in a The company did not engage in computer distribution in Lumberne, but it invested in computer dealership in the Remfur Republic. As a result of this clustering it becomes possible to establish other businesses which take advantage of these economies without joining any big organization. Both of these are false. In surveys, nearly a billion people say. The perspective that suggests the key interaction where actions and responses can yield a competitive advantage. New York City would grow by tens of millions of people if allowed to,continuing the breakneck growth seen from 1800 to the mid twentieth century. \text{ } & \text{ } & \text{ }\\ For example, the data entry for me would include 2022, Technology; 2021, Think tanks, and so on through the years in the data. Knowledge spillovers This paper seeks to tie the concepts of accessibility and agglomeration together by arguing that accessibility benefits ultimately stem from the agglomerative potential created by various transportation investments. Workers in science, technology, engineering, and mathematics (STEM) are vital for regional and national prosperity. Theories of the firm and strategic management argue that competitive advantage originates in the development and exploitation of assets or capabilities that may be internal or external to the firm. We see this in the real world in history: one study found that French cities persisted in Roman locations for thousands of years, even after the pattern was inefficient as it gave them poorer access to navigable waterways than, say, Britain. _____ refers to holding securities, such as stocks and bonds, of companies in countries outside one's own but does not entail the active management of foreign assets. The company designs, manufactures, and markets cell phones in Swinland. Ex: The agglomeration of cattle manure into dry fertilizer granules makes them storable for later use, and easier to handle, as well as apply. Rayato Inc. is a cell phone manufacturing company headquartered in Swinland. In this case, HiSpark Inc. is focusing on: In the context of foreign direct investment, which of the following statements is true of ownership advantages? Economies of scale external to a firm are the result of spatial proximity and are referred to as agglomeration economies of scale. //