Asked by jayla houser on Jul 20, 2024
Verified
What is it called when competing companies locate next to each other? Why do they do this?
Competing Companies
Businesses operating in the same industry or market that offer similar products or services to the same customer base.
- Recognize key elements that drive businesses to concentrate in particular areas.
Verified Answer
JH
James HarrisJul 21, 2024
Final Answer :
It is called clustering. In many cases, this occurs because of a critical mass of information, talent, venture capital, or natural resources. Alternately, clustering occurs because several firms close together create a larger total market than the same firms separated.
Learning Objectives
- Recognize key elements that drive businesses to concentrate in particular areas.
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