External economies arise essentially from?

A. a firm’s individual policies
B. localization of industry
C. government economic policy
D. free transferability of shares

Correct Answer: Option B

B. localization of industry

Explanation

External economies are the benefits a firm derives from concentration or localization of industries in a particular area or the benefits a firm enjoys from an increase in its output and decrease in cost as a result of the kind of assistance it derives from other firms.