Locational Cost Analysis

Definition

Locational cost analysis refers to the study of the costs associated with different locations for a particular activity or industry. It involves analyzing factors such as transportation costs, labor costs, and access to resources in order to determine the most economically efficient location.

Related terms

Site Selection: The process of choosing a specific location for a facility or operation based on multiple criteria.

Comparative Advantage: The ability of a country or region to produce goods or services at a lower opportunity cost than other countries or regions.

Industrial Location Theory: A set of theories that explain why certain industries tend to cluster in specific locations due to various economic factors.