Transportation Networks and Geographical Specialization

Five locations are linked by a transportation network; one hub and four feeders. Without trade (left part), each location has to produce the goods it requires. In this case the hub is not a hub but a location similar to the others but potentially better connected. With trade (right part), a process of geographical specialization becomes possible. Each peripheral location can specialize in producing one good and imports what is not produced on location. The hub can specialize at trading goods produced in the four feeder locations.

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