Explain the geography impact of a country plays a major role
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Looking across countries, in addition to some of the factors mentioned already, such as exposure to tropical diseases, proximity to existing markets for one’s exports can cut transport costs and shipping delays in getting those exports to market. This can play an important role for developing countries seeking to link themselves into international supply chains, which have become the primary mode of globalization. Because firms in such countries are generally “price takers” rather than “price setters,” any additional costs in getting exports to market will simply lower the wages and profits resulting from such exports. Meanwhile, because timing is critical in many supply chains, any potential barrier to access to markets will generally disqualify a country in the eyes of the lead firms organizing those supply chains. These factors help explain the rapid growth in so many countries in Southeast Asia, whose geographical position helps them gain a foothold in the supply chains.
Conversely, a country that is landlocked can have particular problems accessing international markets, unless it enjoys free access to the sea through navigable rivers. Worst off are what Paul Collier has labeled “landlocked country surrounded by bad neighbors,” which he identified as home to many of the world’s “bottom billion.” Here, the disadvantages involve not only lack of access to markets but also the spillovers of civil wars and other problems arising in those “bad neighbors.” Amadou M. Wannhighlights this issue as well in his answer.
Within countries, a growing body of research demonstrates that as countries grow, production tends to concentrate in particular regions, some of which enjoy objective advantages in terms of access to ports and other gateways to international markets, while others represent pure agglomeration around relatively minor initial advantages. [For example, my hometown of Dallas, Texas has become a major center of business and finance despite no obvious geographical advantage. The story -- perhaps apocryphal--is that in the 19th century, local leaders bribed a railroad company to run its new line so that it crossed an existing line at Dallas. From such a modest initial advantage emerged the ninth largest city in the United States.] These forces of agglomeration are very powerful, calling into question many efforts to help lagging regions catch up. Rather, there’s a plausible argument that the best response is to encourage and facilitate geographical mobility, helping to ensure that people can move to where the opportunities are growing, rather than trying to ensure that opportunities find people where they’re currently living. Policy implications include efforts to ensure that all children gain the basic skills needed to move and find jobs once they enter the labor force; avoiding mobility-reducing policies that favor homeowners over renters; avoiding restrictive policies on zoning and land-use; and, of course, reduced barriers to international labor mobility.
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Conversely, a country that is landlocked can have particular problems accessing international markets, unless it enjoys free access to the sea through navigable rivers. Worst off are what Paul Collier has labeled “landlocked country surrounded by bad neighbors,” which he identified as home to many of the world’s “bottom billion.” Here, the disadvantages involve not only lack of access to markets but also the spillovers of civil wars and other problems arising in those “bad neighbors.” Amadou M. Wannhighlights this issue as well in his answer.
Within countries, a growing body of research demonstrates that as countries grow, production tends to concentrate in particular regions, some of which enjoy objective advantages in terms of access to ports and other gateways to international markets, while others represent pure agglomeration around relatively minor initial advantages. [For example, my hometown of Dallas, Texas has become a major center of business and finance despite no obvious geographical advantage. The story -- perhaps apocryphal--is that in the 19th century, local leaders bribed a railroad company to run its new line so that it crossed an existing line at Dallas. From such a modest initial advantage emerged the ninth largest city in the United States.] These forces of agglomeration are very powerful, calling into question many efforts to help lagging regions catch up. Rather, there’s a plausible argument that the best response is to encourage and facilitate geographical mobility, helping to ensure that people can move to where the opportunities are growing, rather than trying to ensure that opportunities find people where they’re currently living. Policy implications include efforts to ensure that all children gain the basic skills needed to move and find jobs once they enter the labor force; avoiding mobility-reducing policies that favor homeowners over renters; avoiding restrictive policies on zoning and land-use; and, of course, reduced barriers to international labor mobility.
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India is located in the centre of south east Asia which provide a strategic location in Indian Ocean
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