location-specific advantage

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.

location-specific advantage

the competitive advantages that a firm derives from its location near, say, to its raw material or to its main customers. See FIRM LOCATION.

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References in periodicals archive ?

This measure is the sum of total gross domestic production of the host countries and represents the location-specific advantage of the host.

The allocation and motivation of Japanese and U.S. foreign direct investment in an economically integrated area: the case of the European Union

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.

GLOBAL ALLOCATION OF PRODUCTION SEEN IN A DYNAMIC PERSPECTIVE

The bank can thus leverage the UAE's or Abu Dhabi's location-specific advantages to enhance its efficiency and strategic benefits.

"To move or not to move?"

The project exploits location-specific advantages that arise from two crucial facts.

MendTheGap: Smart Integration of Genetics with Sciences of the Past in Croatia: Minding and Mending the Gap

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.

From the editor

Dynamics of globalization; location-specific advantages or liabilities of foreignness?

In addition, we showcased the location-specific advantages Dubai offers to international filmmakers.

Dubai Studio City eyes Italy cinema ties

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.

Theorizing Japanese FDI to China

In Dunning's eclectic theory, for example, local factors that have a positive impact on the costs and market potentials of FDI ventures are identified and labeled as location-specific advantages (LSAs).

Technological Capabilities and International Production Strategy of Firms: The Case of Foreign Direct Investment in China

Location-specific advantages include the extent of business opportunities and the degree of political stability of the Chinese economy.

FOREIGN BANKING IN CHINA

Two topical issues hardly treated: collaborative R&D and the location-specific advantages of overseas R&D.

The Internationalisation of Research and Development by Multinational Enterprises