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