Rinker Audio Products is looking to enter Europe. Toward this, the company is studying various European countries to see which ones to invest in. Which of the following location externalities is favorable for Rinker's foreign direct investment in a country?
A. presence of supporting industries
B. market with many other foreign competitors
C. lack of intellectual property rights laws
D. presence of a communist political system
E. appreciation of local currency
Answer: A. presence of supporting industries