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Why do industries tend to form a cluster?
Answers
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Clusters encompass an array of linked industries and other entities important to competition. They include, for example, suppliers of specialized inputs such as components, machinery, and services, and providers of specialized infrastructure.
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Industries tend to form cluster or they are concentrated in one place .
This is because some industries need raw materials which can be given by other industries .
There will be high transportation costs and hence the industries are located close enough to avoid that .
This results in great industrial development because the profits are multiplied for each industry.
Cluster generally means a group .
This is commonly seen in highly developed industries.