Which of the following statements is true concerning clusters?
A) The desire to build or upgrade a core competency is one reason why entrepreneurial and other fast-growing firms often tend to locate close to their competitors.
B) Clusters are geographically dispersed companies operating within the same industry.
C) The United States does not have any clusters; they are all located in Europe.
D) According to Porter, clusters provide barriers to the access of employees, suppliers, and specialized information.
E) Employees from competitive firms in a cluster are not permitted to socialize with one another.

Question

Quizplus · Accepted Answer

Clusters are geographic concentrations of interconnected companies, specialized suppliers, service providers, and associated institutions in a particular field. One reason for firms to locate close to their competitors is to build or upgrade a core competency, which can be achieved through the exchange of information and the sharing of knowledge within a cluster.

Which of the Following Statements Is True Concerning Clusters