One reason for a firm locating near its competitors is the presence of a major resource it needs.

Question

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If a firm needs a major resource that is present in the same location as its competitors, then it can be advantageous to locate near them in order to have easier access to that resource. This can also create an industry cluster, which can attract more suppliers of the resource and create a more efficient supply chain for all companies involved.

One Reason for a Firm Locating near Its Competitors Is