What are ‘agglomeration economies’?

cbse
manufacturing-indust
cbse-class-10
geography
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#1

What are ‘agglomeration economies’?

Answer:
Cities provide markets and also provide services such as banking, insurance, transport, labour, consultants and financial advisors, etc., to the industries. Many industries tend to come together to make use of the advantages offered by the urban centres known as agglomeration economies. Gradually a large industrial agglomeration takes place. So, it is basically coordination of various industries in a city for the development of manufacturing industries.