Locating a Site for a New Business Normally Begins with Identifying

question 10

True/False

Locating a site for a new business normally begins with identifying the area of the country that seems best suited to the type of business the entrepreneur is starting.

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Definitions:

Comparative Advantage

An economic theory stating that countries or entities benefit from specializing in producing goods where they have lower opportunity costs, leading to more efficient global production.

Absolute Advantage

The ability of an entity to produce a good or service more efficiently than its competitors when given the same resources.

Specialization

The process by which individuals, businesses, or countries focus on producing a narrow range of goods or services, improving efficiency and expertise in that area.

Comparative Advantage

The ability of a country or entity to produce a good or offer a service at a lower opportunity cost than competitors, facilitating specialized trade benefits.