A example of space would be shipping off large quantities of manufactured goods from China to California than domestic transportation in the United States because of the relative distance measured in time and money.
Place is define as a location in which physical and human landscape, cultural practice, social life and economic activities. This is importantly used in determining the resource that is part of the place’s economic development, the attractiveness of places for human settlement. Human activities includes the forms of government, religious tradition, gender roles, architecture, interaction between people and work that people do in the society. The observation of everyday behavior of people in that place. Company or headquarters are located there for a reason, it could be the neighboring locations of significant. The difference between places are created as much by the connections between places as they are processes that are internal to them. Given place tries to form an unique knot of linkages to many other places. Places can be describe as the coming together of flows across space to create unique intersections in particular locations.
A example of place can be about New York City and Hong Kong as wealthy cities, they remain to play a large role in a globalized financial system. The concentration of major banks and financial institution with global reach and large amount of transaction completed through these global financial centers.
2.The increasing returns to scale are factors that cause the average cost of producing something to fall as the quantity of its output increases. Returns to scale happens when output doubles if doubling all inputs. It is not simple to replicate the success of a place that represents increasing returns. Increasing returns to scale means a declining long-run average cost. A particular production environment lead to imperfect competition, producers are producing at different rates with technologies with various possibilities. Producers tend to form in one place due to benefits of clustering, monopolistic competition with the prospect of above normal profits. The production of a particular product’s cost decrease as it continues. The benefit from the lower transport costs for its components that being supplied. The manufacturing of goods are less expensive in that location due to lower transport costs, wages of workers who will worth relatively more and it will also be more attractive as a place to work. The transport costs to reach a large market will also be reduced by locating in proximity to that market and attractiveness of that market draws more manufacturers, their workers will also be part of