Silicon Valley in California is the world center for the computer and semiconductor industry and has many of the world's major computer and semiconductor companies located close to each other there. This provides the location-specific advantage of

Question

Nasir Wallace

Business

2 February, 07:57

Silicon Valley in California is the world center for the computer and semiconductor industry and has many of the world's major computer and semiconductor companies located close to each other there. This provides the location-specific advantage of

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Gunner Stanton · Answer 1

Externalities

Explanation:

When we discuss externalities, we refer to specific benefits or costs an organisation enjoys or suffers as a third party as a result of having no direct control over how those benefits or costs are created.

Externalities are both positive (benefits) or negative (costs), they can also be private (to an individual or a business) or public (affect the enitre society)

When a computer based organisation is based in Silicon Valley, the advantages to business it enjoys as a result of that location is the location-specific advantage of Externalities.