Pontes, José PedroParr, John B.2010-12-162010-12-162004Pontes, José Pedro and John B. Parr. (2004). "Economies of scope, agglomeration and location of the multinational firm". Instituto Superior de Economia e Gestão - DE Working papers nº 4-2004/DE/UECE0874-4548http://hdl.handle.net/10400.5/2704A classification of the locational patterns of firms (with economies of scope present) is outlined, in order to cast light on the location of the multiplant, multinational firm. This is driven by three forces: economies of scope that follow from the co-location of different activities; transportation costs of the final good; and factor mobility costs. It is concluded that the single-plant firm prevails when spatial economies of scope are strong in relation to either transportation or mobility costs. The vertical (horizontal) multiplant firm emerges when mobility costs of factors (transportation costs on the final good) are high. These two kinds of spatial costs, which are mutually exclusive, favor the formation of multinational firms.engEconomies of ScopeEconomies of AgglomerationMultiplant FirmsMultinational Firmsworking paper