Meaning Of Industrial Custer

Q. Write a short note on industrial clusters.

Q. In an automobile cluster, some firms make steel, some make tyres, and some make car seats. All these products are then purchased by another firm that assembles the car. The industries in the cluster source raw materials from the small and medium enterprises nearby.

Which of the following characteristics is/are discussed in the above scenario?

1. Geographical proximity of small and medium enterprises
2. Sectoral specialisation
3. Close inter-firm collaboration
4. Supportive regional and municipal governments

Q. Which of the following is true regarding the origin of the handloom weaving industry?

1. Artisans settled in one locality and the industry evolved over centuries.
2. It emerged to take care of the input and services required by large industries.
3. The government encouraged the handloom weaving industry cluster.
4. It emerged so that production could be increased and handloom products could be exported.

Q. Which of the following is not one of the chief characteristics of a successful cluster?

1. Geographical proximity of MSMEs
2. Socio-cultural identity
3. Single-skilled workforce
4. Active self-help groups

Q. When many small firms specialise in one sector and operate in close geographical proximity, they form a/an

1. big firm
2. industrial group
3. industrial district
4. industrial state

Q. Which of the following statements do not explain the origination of clusters?

1. Clusters evolve over a long time when artisans settle in one locality and evolve over centuries.
2. When a large firm is established, a cluster of firms may emerge to take care of its input and service requirements.
3. Governments may decide to encourage manufacturing using raw materials from a region.
4. The government incentivises the formation of the cluster to attract foreign companies to the country.