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In general, the better the transportation in an area, and the fewer barriers there are, the more robust the economy will be. This was why early cities all - EVERY ONE OF THEM - developed around seas and rivers. Water transportation, whether by boat or barge, is easier and more convenient than land transportation. It was only after the development of wheeled vehicles on decent roads that inland cities started to thrive as much as coastal cities.

So if your town is in a valley, with no rivers or good roads, then it will be difficult and expensive to get goods and materials to your town. Unless there's a pretty good reason for them to come to you, not many people will.

So look at the major cities of medieval times; London, on the River Thames; Paris, on the Seine; Rome on the Tiber. Amsterdam, on the coast. Alexandria on the Mediterranean Sea and Cairo on the Nile.

Later on, New York with its harbor, and Charleston with _its_ harbor. Boston, on Boston Bay. Tokyo, on its bay. Even in frigid Iceland, Reykjavik is on the waterfront.

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Q: How do transportation barriers and corridors affect the economy of an area?
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