what-role-do-external-economies-play-in-establishing-a-comparative-advantage-as-

Question

What role do external economies play in establishing a comparative advantage, as seen in Southern California's movie industry?

Accepted Answer

They create a concentration of industry-specific resources and talent.

Answer

They increase the availability of government subsidies.

Answer

They provide a competitive advantage through lower transportation costs.

Answer

They reduce the cost of raw materials for production.