Economic Geography in International Business

The location of a firm significantly influences its international business strategies, particularly in terms of accessing localized knowledge and establishing networks with upstream and downstream value chain partners. Proximity to sub-national business clusters can also provide valuable insights into local business practices. Economic geography plays a critical role in understanding location, as opposed to classical business theories like Dunning׳s eclectic paradigm and Porter׳s diamond model, which focus on country-level factors. Economic geography delves into sub-national variations and firm-location interactions, offering a more comprehensive understanding of location׳s impact on business strategies.