A firm establishing a manufacturing plant in a foreign country due to the cheap labor costs in that country is an example of the _____ advantage that the firm enjoys.

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The establishment of manufacturing plants in foreign countries due to the availability of cheap labor is a classic example of location advantage. A location advantage refers to the benefits that companies reap by locating their operations in specific locations, such as access to natural resources, cheaper labor, or better transportation infrastructure. By taking advantage of a country's location-specific advantages, firms can reduce their production costs, increase their profitability, and gain a competitive advantage over their rivals.

A Firm Establishing a Manufacturing Plant in a Foreign Country