Silicon Valley in California is the world center for the computer and semiconductor industry and has many of the world's major computer and semiconductor companies located close to each other,thus offering the location-specific advantage of:
A)multi-point competition.
B)an oligopoly.
C)first movers.
D)externalities.

Question

Quizplus · Accepted Answer

Silicon Valley is the world center for the computer and semiconductor industry.Many of the world's major computer and semiconductor companies,such as Apple Computer,Hewlett-Packard,and Intel,are located close to each other here.In Dunning's language,this means that Silicon Valley has a location-specific advantage in the generation of knowledge related to the computer and semiconductor industries.Economists refer to such knowledge "spillovers" as externalities.and a well-established theory suggests that firms can benefit from such externalities by locating close to their source.

Silicon Valley in California Is the World Center for the Computer