Clusters of related industries in a particular location have which of the following potential challenges?(1 point)

Question

Responses

limited motivation for workers to improve their education and training
limited motivation for workers to improve their education and training

a failure to take advantage of economies of scale
a failure to take advantage of economies of scale

overreliance on one industry
overreliance on one industry

the creation of a shortage of skilled workers

Answer 1

Clusters of related industries in a particular location can face the following potential challenges:

1. Limited motivation for workers to improve their education and training – Workers may feel comfortable in their existing roles without a strong incentive to upskill.

2. A failure to take advantage of economies of scale – While clusters can promote collaboration and sharing of resources, they may also lead to inefficiencies if companies do not scale appropriately.

3. Overreliance on one industry – If the cluster is dominated by a single industry, any downturn in that industry can have severe consequences for the local economy.

4. The creation of a shortage of skilled workers – As industries grow, there may not be enough skilled workers available, leading to competition for talent and potential labor shortages.

Among these challenges, overreliance on one industry is a prominent concern, as it poses significant risks to economic stability if that industry faces difficulties.