Potential for locational benefits

Question

What is the potential for locational benefits?

Answer 1

The Potential for Locational benefits are as given here:

1. Differences in inflation rates, wage rates, worker productivity, tax rates, energy costs, government regulations, and the similar to create sizable changes in developed costs from country to country.

2. The quality of a country’s business environment also presents locational benefits - the governments of some countries are nervous to attract outside investments and go all-out to make a business climate that outsiders will view as constructive.