Agglomeration refers to the clustering of people, businesses, and resources in a specific area, often leading to economic benefits. This phenomenon typically occurs in urban settings where companies and industries benefit from being close to each other, sharing resources, and accessing a larger labor pool. The advantages of agglomeration include reduced transportation costs, increased innovation, and enhanced collaboration among businesses. Cities like New York and Tokyo exemplify agglomeration, as they host diverse industries and a high concentration of talent, fostering economic growth and development in the region.