A reduction in production cost the results when related firms locate near one another. Firms can be related as competitors in the same industry, by using the same inputs, or through providing output t [..]

savings which arise from the concentration of industries in urban areas and their location close to linked activities. e.g. A car factory attracts component suppliers to locate close by, saving on tra [..]

(see economies of agglomeration).

Agglomeration economies or external economies are benefits received by a specific property from the surrounding features or facilities. While determining the value of real estate, consideration should [..]