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The location of industry is determined by the complex interaction of many factors, so it is useful to abstract from reality and focus on the main forces. In this paper I suggest it is useful to organise the various causes into three main categories. The first concerns physical geography, so-called first-nature geography. The second is the balance of economic agglomeration forces and dispersion forces—so-called second-nature geography. Most of these causes can be manipulated by policies such as production subsidies, trade liberalisation, and taxation. I also suggest that there is an important "in between" category, namely causes that adjust more slowly than industrial clusters but faster than coastlines. In this "1.5 geography" I would include transport networks and factor endowments, both of which are malleable to government policy.