Explain the Location Advantages of FDI

question 42

Essay

Explain the location advantages of FDI.Discuss the value of acquiring and neutralizing location advantages with an example that highlights how a location advantage does not necessarily overlap a country-level advantage.

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Definitions:

Maturity Date

The specified date on which the final payment of a loan or financial instrument must be repaid.

Interest Expense

This refers to the cost incurred by an entity for borrowed funds over a period of time, typically expressed as an interest payment on debt.

Interest Payment

The amount paid by a borrower to a lender as compensation for the use of borrowed money, typically expressed as a percentage of the principal.

Premium

The amount paid for an insurance policy or the amount by which a bond sells above its face value.