Question

Wall Street, in the borough of Manhattan in New York City, is the heart of the U.S. financial system, where banks, brokerage houses, other financial firms, and the New York Stock Exchange are all located. What is the reason for New York City's comparative advantage in the financial market

Answer 1

Answer:

Its External Economies

Explanation:

Comparative advantage is the ability of an organization to carry out production activities and other business operation at a cheaper opportunity cost compared to rivals.

Some factors give rise comparative advantage which one of them is Internal and external External economies. While internal economies are firm specific and internal to the organization , external economies are caused by external situations.

External economies also occur when companies are located in a place where there are other specialized worker

Answer 2

Incomplete question, here's the options that complete the questions:

A. external economies

B. the development of superior infrastructure

C. an abundant supply of skilled labor

D. New York City has one of the largest sea ports in the world

Answer:

A. external economies

Explanation:

The summarizing reason for this unique advantage of New York City is the influence of external economies. The population is made up of a large number of foreign businesses which plays a role in New York's local economy and has placed it as the financial capital of the world.

This has thus given the city comparative advantage.