1. According to Wezel and Lomi (2003), one of the factors contributing to the competitive advantage of nations was the ability of organizational populations to ______.

1. learn from the experience of their successful members
2. teach their unsuccessful members
3. learn from the experience of their unsuccessful members
4. focus on their successful members

2. Who identified the idea of geographical clustering and in which year?

1. Alfred Marshall in 1920
2. Landes in 1969
3. Chandler in 1990
4. Joseph Harding in 1876

3. What is meant by ‘industrial atmosphere’?

1. survival and development of clusters
2. wider recognition and economic activity
3. inventions and improvements in machinery
4. geographic location capable of supporting productive economic activity

4. Clusters can also be created, or encouraged to develop, through public policy interventions.

1. True
2. False

5. The process of industrialisation and economic development is influenced by ______.

1. resource cost, transaction cost, economies of scale and scope
2. resource costs, geographical clusters, transaction costs, innovation
3. resource costs and transaction costs only
4. transaction costs and innovation only

6. Institutional thickness ______.

1. is a guarantee for business survival
2. does not decrease over time but can increase
3. is no guarantee for business survival
4. is not something that can decrease or increase

7. Perhaps the most important initial impetus for geographic specialization was the uneven distribution of ______.

1. business opportunities
2. transport links
3. natural resources
4. skilled labour