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"To what extent does location give competitive advantage to firms faced with rivals"
Member rating: No Rating | Words: | Submitted: Mon Nov 01 2004
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"To what extent does location give competitive advantage to firms faced with rivals" The location of firms depends on factors such as cost, quality of inputs and even their availability. These factors can vary from place to place so this gives firms an incentive to locate in the lowest cost locations with other things being equal. The location for most firms is highly dependent on labour costs and raw material costs as these are naturally less mobile place to place and almost completely immobile country to country, capital does not have as much effect on the location of a firm. Differences in labour costs are one determinant of location but on a regional scale in the UK there is not a substantial difference. The importance of raw materials as a factor determining location can be a problem as on some occasions the availability of raw materials dictates the location of...
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