Location-specific advantages

Location-specific advantages

Advantages (natural and created) that are available only or primarily in a particular place.

Location-Specific Advantage

The ability of an individual, company, or economy to conduct an activity better than another for reasons related to location. Location-specific advantages are important in making decisions such as the products one should make or sell; if a company is unable to make a product as well as another because resources are unavailable or difficult to acquire in a certain location, the company might be well advised to make a different product. For example, a lumber company in Oregon has a location-specific advantage to a lumber company in Arizona because there are simply more trees in Oregon. This makes it unlikely that the company in Arizona will be able to fill orders as well or as quickly as the company in Oregon. For this reason, the Arizona company's management might consider investing in mining instead of lumberjacking.
References in periodicals archive ?
To do this they focus on Dunning's location-specific advantages of host countries, presented as composite indices for Global Competitiveness, Human Development and Corruption Perception.
Dynamics of globalization; location-specific advantages or liabilities of foreignness?
In addition, we showcased the location-specific advantages Dubai offers to international filmmakers.
As Rugman (1985) states, this theory possesses intimate relationship with Dunning's "eclectic theory", which combines ownership, internalization, and location-specific advantages into a comprehensive model.
Effects of economic integration on location-specific advantages (L)--static effects
Foreign FDI inflows are stimulated by this effect as investments are derived from the increased location-specific advantages of the member countries' tariff realignment (Dunning, 1997a).
In addition, countries with unstable political histories or less developed economic regulations can increase their location-specific advantages by joining an integrated area.
The paradigm helps especially to explain not only how regional integration changes location advantages, but also how it affects the distribution of ownership advantages between firms of different origins and the configuration of both ownership-and location-specific advantages.
First, all multinationals are motivated by the same set of location-specific advantages.
We are delighted to showcase the location-specific advantages Dubai offers to international filmmakers and we invite them to the emirate for commercial, television or cinema production.