What are some of the downsides to geographical clustering?
1. Increased competition: When businesses are clustered together in a certain area, they may face increased competition from other businesses in the same area. This can lead to lower profits and a decrease in market share.
2. Overcrowding: Clustering can lead to overcrowding in certain areas, which can lead to a decrease in quality of life for those living in the area.
3. Increased costs: Clustering can lead to increased costs for businesses due to higher demand for resources and services in the area.
4. Environmental damage: Clustering can lead to environmental damage due to increased pollution and waste from businesses in the area.
5. Social issues: Clustering can lead to social issues such as increased crime and poverty in the area.