Question

Which of the following statements is true concerning clusters? According to Porter, clusters provide barriers to the access of employees, suppliers, and specialized information. Employees from competitive firms in a cluster are not permitted to socialize with one another. Clusters are geographically dispersed companies operating within the same industry. The United States does not have any clusters; they are all located in Europe. 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.

Answer 1

Answer: 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.

Step-by-step explanation:

A cluster is the concentration of industries, businesses, or suppliers, that are interrelated in a particular field.

According to Porter, clusters bring about increase the productivity, stimulate new business, drives innovation and they're vital to strategic management.

Of the options given, the answer is "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".