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locational advantage


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Although it is true that transport costs have become less significant, and that new computer and telecommunication technologies have reduced the importance of location for production, locational advantage is still important in industrial location; for example, the overwhelming majority of logistics providers possess a geographic speciality (and even the worldwide integrated firms either have branches in, or have acquired firms with, strategic geographic locational advantage). ‘This is because transportation is primarily a local industry that requires rich, geographically-specific knowledge, even if the industry deals with international and widely geographically dispersed transactions’ (Aoyama et al. (2006) Prof. Geogr. 58, 3). For a second example, see Lee and Rodrigue (2006) Growth & Change 37, 4 on locational advantage and differential growth within the Korean port system.

Subjects: Earth Sciences and Geography.


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