The Reasons Why Particular Locations Develop a Competitive Advantage in the Production of Particular Type of Goods are Complex - Discuss

Meaningful analysis is conducted from different perspectives, whereas apart from cost and opportunities from the perspective of the company, there are also cost and opportunities from the perspective of the whole country, the government, and the local community. Authority's activities and even the local community can be decisive as well. Costs and opportunities might also look different depending on whether they are looked at for the short term or the long term. This essay tries to explain the phenomenon of the impact of location on the competitive advantage by using the extensive knowledge of many theories that have been written on this subject. It also shows the portion of the theories of former importance that have lost their relevance in the present form of globalization and technological development. Many of the commonly used theories do not describe fully the causes of this phenomenon; theories are trying to explain what it is and why competitiveness can be enhanced with business locations in the region. It is also important to understand trends and identify sources of competitive advantage, and to realize the impact of independent factors such as the global economic crisis. Lastly, this essay tries to cite examples of locations that have achieved competitive advantage, and explain the reasons for which this was possible