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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
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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
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.
President: Sri Lanka's main concern is achieving a sustainable future
Location-specific advantages are the "immobile, natural or created endowments" (Dunning 2000a: 164) which become an incentive to invest in a particular country.
An empirical analysis of the impact of three important aspects of Eclectic Paradigm on Foreign Direct Investment (FDI)
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?"
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?
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.
"Old school": back in the limelight
"In addition, we showcased the location-specific advantages Dubai offers to international filmmakers.
Dubai Studio City eyes Italy cinema ties
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.
Foreign affiliates of the largest insurance groups: 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.
Theorizing Japanese FDI to China

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