Some economies are based on location. The economies that support the Suez Canal and the Panama Canal are two examples. Others include proximity to large trading groups like Europe. Ireland lowered their corporate tax and US companies chose Ireland to headquarter their companies to sell to Europe. This led to a rapid rise in Per Capita GDP. The urbanization of Asian cities was accomplished in port cities that support trade.
History includes the same phenomenon that opened the Silk Road to connect Asian and Middle East trade with Europe
The French and Dutch established Trading Posts in the North American Colonies in the 1600s and did the same in Asia and fueled trade between Asia and Europe.
By some miracle, the US made the mistake of off-shoring its manufacturing to become a Service Economy and survived, barely.
Service economies usually include banking, data services, port and warehouse operations, coordination of shipments, sales, travel accommodations and transportation.
The global supply chains require all of these services. AI will lower the number of employees needed as AI software connects these elements to function automatically. The trend of producing what you consume will also simplify trade.
Norb Leahy, Dunwoody GA Tea
Party Leader
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