Molson Hart

Set up a fulfillment center in a smaller town in more rural Texas. It's astonishing to see the economic shockwave it has set off. And it's something that software just cannot match. Software company does hiring somewhat locally, but can also outsource easily. 1/n

You set up a new business? Nice! To your point: Software does set up a shockwave but not locally. Maybe the secondary effects of a new physical business compound each other. Software spreads around the cyberspace. Plus all you need is people and laptops anyway.

Exactly, hence the necessity of countries, states, and cities to seek physical businesses to boos their economies.

Or even more generally: if the political (often geographical) entity overlaps with the economical one (as with physical business), the situation is easier.

Sorry what?

Cities states govt entities might seek physical businesses not just because of these compounding effects, but because most of the effects remain within your jurisdiction (i.e. control) this way. You export software and suddenly you depend on the EU which you can't control.

There are analogues in physical businesses i.e. federal tax codes, trade wars with china, or export requirements but agree about the benefits staying in your jurisdiction.

Yes, there have to be. With more and more efficient transportation/communication things will get more globalized in a way. Governments will have to do whatever to keep up but i doubt they like it.