1) Industry clusters, or agglomerations, can develop when companies and supporting infrastructure are located near each other, allowing for economies of scale, innovation spillovers, and interlinkages that promote competition and cooperation. 2) Samsung invested $7 billion to construct a new memory chip factory in Xi'an, China, which will enhance the region's technology industry and establish it as a global leader in information technology. 3) Real exchange rates and demand conditions over business cycles also influence international trade flows by impacting exports and imports.