Why might an upstart firm developing a new type of landing gear want to locate in Quebec's advanced aerospace cluster, home to firms such as Boeing, Bombardier, Pratt & Whitney, and Rolls Royce?
A)demand conditions
B)company structure, strategy, and rivalry
C)factor conditions
D)related and supporting industries

Question

Quizplus · Accepted Answer

Quebec's advanced aerospace cluster is home to a number of related and supporting industries, including well-established international firms such as Boeing, Bombardier, Pratt & Whitney, and Rolls Royce. By locating in this cluster, the upstart firm developing a new type of landing gear could benefit from the expertise, resources, and networks of these established firms, as well as potential access to suppliers, customers, and other supporting businesses in the aerospace industry. This would provide the upstart firm with a competitive advantage and help it to overcome barriers to entry in the aerospace industry. Factors such as demand conditions, company structure and strategy, and factor conditions are also important for firm location decisions, but related and supporting industries are particularly relevant in this case.

Why Might an Upstart Firm Developing a New Type of Landing