A See In Attach Example

Topic N/A See In Attach Example Topic N/A See In Attach â€" Assignment Example > LOCATION ANALYSISINTRODUCTIONSince ages, land and property have influenced the growth and prosperity of a location or area. The land attributes or the physical landscape, the materials and natural wealth of an area has been mainly responsible for the economic growth of a region. Thus economists have been studying the effects of resources of space and location on the economic activity and economic growth and this is known as the spatial economics. Usually, the spatial economics is concerned with the location analysis which in turn is dependant on the location choice. But this is only one of the many factors affecting economic activity and growth. (Duranton, 2005). But though some experts such as Debreu (1959) argue that spatial economics is only about space, it is not true. Others such as Ricardo (1821), believe that other factors can also be taken into consideration when discussing location choices. He developed a theory of land use based on relative fertility. This and others fin ally led to the theories of location and trade that are based on the concept of comparative advantages across locations. As of today, there are two main approaches of spatial economics -- the first is the urban systems approach as given by Henderson (1974) which focuses on cities and areas growing because of combination of agglomeration economies and urban crowding. And the second is the New economic geography given by Krugman (1991). According to this approach, the cost of trading is more important than the transportation costs in urban systems. Moreover, workers want to be in the area where there is larger market due to agglomeration as it gives them better access to consumers. Basically, location choices by companies, businesses and individuals are based on the information they have on that location. Thus, a major issue in the development of land and property markets is the non availability of timely and accurate market data and the inability to interpret that data in an approp riate fashion. And thus markets and areas that are able to possess such information certainly have the competitive advantage and are able to attract better companies and investment to their location. Another important area of investigation is the role of agglomeration economies in the choice of location by businesses in the regional and international economics. Many experts have shown that by clustering together the same kind of economic activities, the businesses are able to cut costs and gain profitability and productivity and thus many companies go for locations which already have the same kind of economic activity. But it has also been seen that the location decisions of foreign firms are different from their domestic counterparts and thus these need to be investigated separately. And as pointed out by Caves (1996), foreign firms face more uncertainty on account of quality of location and it has to bear higher costs for information search as compared to the domestic firms. CHO SEN AREA For our study, we have chosen the area of Leeds in UK as the study location. Leeds have been chosen because it is one of the prime areas in UK which has been attracting businesses since long. It has recently been named one of the best places in Europe to locate a business (as per Cushman Wakefield ‘European Cities Monitor’). Some of the other key facts about the region are: