Clusters do NOT eliminate competition; rather, they foster a unique environment known as "Co-opetition"—a mix of Cooperation and Competition.
Reasoning:
Competition: Units still compete fiercely for domestic and export orders, which drives innovation and efficiency.
Cooperation: They cooperate on common issues like purchasing raw materials in bulk, lobbying for policy changes, or using a Common Facility Centre.
Banker's Angle: For a lender, options A, C, and D are true benefits. Clustering lowers the cost of monitoring loans (transaction costs), reduces information asymmetry, and improves the borrowers' repayment capacity through shared efficiencies.