Ridemore Autos Inc. has shifted its research and development unit from its home country to Germany. This allows the company to be better informed about the latest developments in the automotive industry by tapping into the highly advanced automotive industry in Germany. In this scenario, Ridemore Autos Inc. is reaping the benefits of
A. economies of scope.
B. location economies.
C. resource immobility.
D. resource ambiguity.
Answer: location economies