Question

Why do you think there is oftentimes a mismatch between dynamic cities and dynamic economies?

I have a lot of family that lives in the Dallas-Fort Worth Area. No offense to the good people of North Texas, but DFW is not exactly the most livable place in America. The summers there are very hot and humid and the winters are cold and rainy but without snow. It's spread out, hard to navigate, and poor public transport. Houston, San Antonio, and Austin are all more culturally vibrant cities within the state of Texas. Sports in that city consist of talking so much about the 90s Cowboys that you wouldn't know they had four other sports teams that are fairly successful. There's some fun things to do, Six Flags and the Texas State Fair are a good time, but ask yourself, when you think of iconic American cities, does Dallas ever come to mind.

Despite this, DFW is one of the richest cities on earth. They have more millionaires than New York and have been one of the biggest hubs of innovation, finance, petroleum, transportation, and several other industries not just in the US, but worldwide for the past 40 years.

As mentioned in Chapter Six of New Geography of Jobs, there's oftentimes a mismatch between cities that are live-able and culturally vibrant, and those that become major hubs of innovation. Moretti sights Berlin as one of Europe's most interesting cities, but also as one with few jobs and high unemployment. Here in the US, cities such as Albuquerque, New Orleans, and Baltimore are far more interesting than Dallas, but struggle economically.

Why does this occur? Shouldn't firm be more interested in locating in more interesting places that workers would be attracted to, or are the dynamics of labor geography simply too multi varied and unpredictable to explain why Dallas is an economic hub and New Orleans is not.

Answer 1

Answer :Let us Understand with the help of concept Known as plant location decision to understand why some cities are better in comparison to other cities

Companies Consider a gamut of factors before making any huge investment ( Capital Expenditure decision)

1. Availablity of raw material : ( Texas has a huge quantity of oil reserve)

2.Availablity Of skilled labor ( Cheap labor)

3.Availability of fuel and power ( Cheap Power)

4.Availability of water ( Abundance )

5.Government policies: ( Tax benefits, loans)

6.Availability of finance( Easy & Cheap Availability)

7. Infrastructure Facilities ( Roads, Railways)

8.Supporting industries and services ( Ancillary Industries)

Therefore some cities are having edge over Other cities.