one crop can be harvested and a totally different crop can be planted. A
farm on the outskirts of a growing city can be sold for subdivision and
development on short notice. Once land is built on, however, its mobility
is much reduced.
Although land is highly mobile among alternative uses, it is completely
immobile as far as location is concerned. There is only so much land
within a given distance of the centre of any city, and no increase in the
price paid can induce further land to be located within that distance. This
locational immobility has important consequences, including high prices
for desirable locations and the tendency to build tall buildings to
economize on the use of scarce land. It is no accident that the downtown
cores of New York, Hong Kong, Toronto, Shanghai, and many other large
cities contain so many tall buildings.
The Mobility of Labour
The supply of labour services usually requires the physical presence of the
person who supplies it. Absentee landlords, while continuing to live in
the place of their choice, can obtain income from land that is located in
remote parts of the world. Similarly, investment can be shifted from iron
mines in South Africa to mines in Labrador while the mine owners
commute between Calgary and Hawaii. The same is true for some
workers, such as designers or bookkeepers, who can work in one location
and submit their work to clients in other locations. But almost all workers
involved in manufacturing and most of those involved in serving the
public in stores, restaurants, and so on must actually be present to supply