Two ways in which the proximity to water has affected Western Europe's economy:
1) Proximity of water can lead to lack of food, which affects economy of the country in various ways.
2) It has wet cool summers and wet, mild winters, so for shelters and cloths, it affects economy by transportation, extra manufacture etc.
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The most densley populated region of england is the southwest region and this is because all the main big cities are in the south the southwest area. Not only is this a popular spot for tourist because of all the cities but also because it has the main amount of middle to lower class houseing in England.