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Economic Geography and Supply Chain Evolvement

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Submitted By shimul147
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INTRODUCTION
Economic geography involves an inconsistency in global competition. Traditional roles of locations been reduced by the new technology and present competition. Resource, capital, technology, corporate networks weakened the necessity of where the firms should be located. Clusters are geographic essence of interrelated companies, service providers, suppliers, institutions which are not only competing but also cooperate in different business areas in advanced world. (The Competitive Advantage of Nations; Porter, 1990)
There are so many theories about cluster but still it is hard to understand the competitive strategy of present global economy. The popularity of cluster diminished the importance of old traditional globalization rather than that it is now using for present dynamic and complex economy which is knowledge based. Cluster change the way of thinking of companies, government and other institutions. For companies cluster suggest the new agendas for management to be more competitive. For example concentrate in Business Environment to lower the cost, trade associations to be more competitive etc.
For government cluster suggest new roles in overall economy in different level of the nation. Upgrading the existing cluster by removing the obstacles should be taken as a priority. Cluster also signifies the opportunity of new information flow for the institutions such as universities, colleges, schools etc. which they must follow to be in strong place in the competition of this present economy.

WHAT IS A CLUSTER?
Marshall (1890/1920) added an interesting chapter about cluster in his Principles of Economics. A cluster is a group which is geographically contiguous in a particular field of many companies and associated institutions. Cluster has playing an important role for centuries. The geographic opportunities of cluster varies from region, state,

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