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International Business Question 2. Define location economies and the value each delivers to a firm. An example is...

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Economics

International Business

Question 2.

Define location economies and the value each delivers to a firm.An example is sourcing in low cost country and delivering thru alogistics network as compared to sourcing local and deliveringusing Omni Channel approaches. Think hub and spoke versusAmazon.

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Location economies are economies that arise from performing a value creation activity in the optimal location for that activity wherever in the world that might beCompanies go around the globe to find and operate under the most optimum settings for their goods Production of the goods under the most optimum settings can give    See Answer
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