Aglomeration Economies: A Case Study

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1. a) Agglomeration economies are a significant power that help distinguish the advantages of the "clustering effect" of enormous amount of activities varying from transport to retailing terminals. There are three chief categories of agglomeration economies:
Urbanization economies involve the cost savings wired with manufacturing in a large city, more by reason of inexpensive and intermediate services, goods, extremely large labor pool and extensive knowledge spillovers. World-wide known Dubai is a great example of Urbanization. In United Kingdom can be noticed in Wiltshire, Swindon and Buckingham shire. These towns show of the rapidest growth rates in Europe. Considering United States, the expanding Los Angeles, Chicago, areas are an early example of uncontrolled urbanization.
Industrialization economies. It is a period of economic and social changes caused by transformation from agrarian society into industrial
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a) The impacts of inter regional migration on the labour market depend on the abilities of migrants, the condition of the host economy and the abilities of local workers. They also differ between the long and short run when the labour and economy can adjust to the growth in labour supply. The immediate short run effects of inter regional migration on the employment and income of existing workers depend particularly on the extent to which migrants have skills that are substitutes or complements to those of existing workers. In case the skills of local existing workers and migrants are substitutes, immigration can be expected to expand competition in the labour market and decrease incomes in the short run. Additionally, the skills of migrants can be complementary to the local workers and all workers experience increased efficiency which can be expected to lead to a growth in the income of existing workers. Moreover, increasing number of immigrants cause the increase of demands for goods and services which expand workplaces withing the supply
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