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.
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.
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?
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.
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).
Location-specific advantages include the extent of business opportunities and the degree of political stability of the Chinese economy.
Two topical issues hardly treated: collaborative R&D and the location-specific advantages of overseas R&D.
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.

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