Question

"Some companies look at this as a huge opportunity," says Fariborz Ghadar, director of Penn State's Center for Global Business Studies and the author of a book on megacities. "We're going to build roads, we're going to build buildings, and [tech companies] love this because you can put the Internet in concentrated cities much more efficiently."

Answer 1

The growth of megacities offers opportunities for businesses to build infrastructure efficiently, especially for tech companies. However, there are limitations to city growth, including traffic congestion, pollution, and overcrowding. The future of cities depends on finding a balance between economic advantages and disadvantages.

Step-by-step explanation:

Fariborz Ghadar, director of Penn State's Center for Global Business Studies, explains that some companies see the growth of megacities as a huge opportunity because they can build infrastructure like roads and buildings more efficiently in concentrated cities. This is especially beneficial for tech companies as it allows them to install the Internet more effectively. By taking advantage of the economic advantages offered by cities, such as economies of scale, companies can reduce costs and increase production.

However, there are limitations to the growth of cities. Agglomeration economies, which are economic advantages gained from being in close proximity to one another, can turn into diseconomies. Traffic congestion, pollution, and overcrowding are some of the problems that cities face when they reach their capacity. There are also economies of scale for negative activities like crime, as cities provide a greater impersonality and density that make illegal activities easier. The future of cities depends on their ability to balance these economic advantages and disadvantages.