In the former Soviet Union, major industrial investment was always directed by the central government. Yet, there was as much spatial concentration of specialized industry there as elsewhere in the world. Apart from tapping local natural resources, this was due primarily to:
A) agglomeration economies
B) adjacency to political centers
C) political favoritism
D) ethnic bias

Question

Quizplus · Accepted Answer

Agglomeration economies refer to the cost savings and benefits that result from firms locating close together. This is particularly relevant in specialized industries where there is a need for specialized inputs, skilled labor, and communication networks. The Soviet Union's centralized control of investment did not prevent the natural clustering of specialized industries due to these agglomeration economies.

In the Former Soviet Union, Major Industrial Investment Was Always