The document discusses factors that contribute to the economic development of a location, including natural resources like oil, coastal access for trade, infrastructure, strategic geographic position, large workforce, skilled labor, and common languages. It also explains the multiplier effect where an initial investment stimulates further economic activity through business partnerships and increased spending and tax revenue. Cumulative causation is described as wealth concentrating in places over time due to globalization allowing access to global markets and skills.

1. Oil resources Coastline – ideal for trade Physical factors aid growth of industry e.g. relief and minerals Strategic location e.g. Pacific Rim encourages investment Large labour force Affluence attracts service providers Skilled labour force (has universities) Languages spoken e.g. English in call centres

2. Oil resources Coastline – ideal for trade Physical factors aid growth of industry e.g. relief and minerals Strategic location e.g. Pacific Rim encourages investment Large labour force Affluence attracts service providers Skilled labour force (has universities) Languages spoken e.g. English in call centres

3. The multiplier effect – the positive spin offs that follow an initial investment (e.g. factory) in a location. Other firms may gain business supplying parts, the increased spending power of workers stimulates the service sector, and higher tax revenues can be invested in education and infrastructure. Cumulative causation – a model that explains why wealth becomes concentrated in certain places. Globalisation increases the chances of this, as local people can find global markets for their products or attract employers with their skills.