How does the geography and environment shape the economic activity of a region?

Geography and their environment are very influential on a region’s economic activity. For example, most major U.S. cities, including New York City, Chicago, and Boston, are all located near water. This is because when these cities were founded, water was the main mode of transportation. The environment also has many economic consequences, including the type of crops that can be grown and whether or not different activities can take place outdoors.