If ICT (Information and Communication Technology) has enabled Essay

If ICT (Information and Communication Technology) has enabled financial markets to become more globalised, wont this undermine the reasons for banks and other financial services to remain in London - Essay Example The globalisation has also seen the expansion of institutional investor activities into new territories, meaning the movement of a significant portion of their investments to new markets. This paper seeks to explore the implications of this phenomenon with the aim of showing that ICT, although means better communication and better cooperation across space, space still matters.. Economic geography seeks to explain spatial orientation and distribution of economic activities (Krugman 2011, p. 5). The property of labour to be attracted to production centres makes the production centres even more attractive as the new employees are also consumers resulting in other firms as well as workers joining the centre (Krugman 1991, p. 5). The centripetal market forces described are attributed to the agglomeration of the centres and not the proximity to natural resources (Smith 2012, p. 4). This was what caused the first unbundling with productions that occurred in rural settings with products intended for locals shifting to industrial form of production (Elms and Low 2013, p. 13). This classified the north industrialisation. However, with the ICT innovations of recent years that have seen the reduction of transport costs that makes the occurrence of agglomeration less likely. To explore these peripheries, the businesses need to have a centralised manufacturing area. This is coupled higher costs and congestion caused by an agglomeration act as centrifugal forces driving production away from the centres through sourcing strategies (Smith 2012 p. 5).With the ICT innovations spurring globalisation, the effect was that the spatial economics views shifted This phenomenon explained the north de-industrialisation and south industrialisation otherwise known as the second unbundling (Elms and Low 2013, p. 14). Countries of the North (Europe, Japan and North America) saw an industrial revolution as a result of