Bogota Subway Map on This field attempts to provide an explanation of why some economic activities are clustered in cities and regions; Krugman shows that producers enjoy an economy of scale as long as they are clustered within the same region or city. He argues that the emergence of economic activity is not random but chaotic; that is, there is an underlying pattern to economic activity, though this pattern is based on the principles of non-linear dynamics (i.e., chaos). For example, in the case of high-tech clusters, the availability of transportation and communication systems, of core competencies, and of the adequate research infrastructure are variables that confer a self-reinforcing set of advantages on a certain area. Krugman has also contributed to our understanding of economic policy. He showed that there is almost no gain for a country to engage in industrial policy, which is basically done by closing some key domestic industries to foreign competition through trade protection. Bogota Subway Map 2016.
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