The post is ignoring key ideas of economic geography: benefits of agglomeration, and transport costs. Agglomeration is the idea that there are a cluster of ben

The post is ignoring key ideas of economic geography: benefits of agglomeration, and transport costs. Agglomeration is the idea that there are a cluster of benfits arising from clustering people doing an activity together. Inter-firm sharing of technologies and practices, in particular. A lot of the transferred knowledge is informal and implicit, and a lot of the transfer happens outside of the formal workplace. Transport costs: as transport costs decline (and they certainly have done so for information, voice and video communications), then previously negligible differences in costs become significant. So, paradoxically, cheaper communications increase the relative value of clustering together, and especially the value of being physically near your biggest customers. This is true even for whiteware manufacturers, let alone high-information services.