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 ?
It is inevitable that Sri Lanka should capitalize on the location-specific advantages and position itself as a hub, when this economic boom happens in the Asian Region.
Location-specific advantages are the "immobile, natural or created endowments" (Dunning 2000a: 164) which become an incentive to invest in a particular country.
According to Dunning's OLI-model, a global allocation of the production depends on the analysis and understanding of three advantages: Ownership-Specific Advantages, Location-Specific Advantages and Internalization-Incentive Advantages (Dunning & Lundan, 2008), thus the title OLI-model.
The bank can thus leverage the UAE's or Abu Dhabi's location-specific advantages to enhance its efficiency and strategic benefits.
The project exploits location-specific advantages that arise from two crucial facts.
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?
Three specific factors: First, Switzerland has tremendous location-specific advantages. Second, the current financial market crisis has brought to light the advantages of "old school" wealth management as practised in Switzerland.
"In addition, we showcased the location-specific advantages Dubai offers to international filmmakers.
In the third section we examine the determinants of foreign expansion into other markets and in the final section we provide an analysis of the internationalization of these companies based on location-specific advantages.
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.

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