Final answer:
The assertion that information technology enhances business location flexibility and competitiveness is true, as it enables firms to expand their reach and navigate through increased global competition.
Step-by-step explanation:
The statement that information technology gives more flexibility in choice of business location while allowing firms to remain competitive is true. Information and communication technologies (ICT) allow firms to outreach and find customers beyond their local geographic areas, driving competition from different regions and countries. This facilitates larger markets for small firms but can also lead to the rise of large firms with substantial market control. In a business landscape where companies are not tied to specific locations due to local resource availability, ICT promotes a level of operational and strategic flexibility previously unattainable.
Globalization and advanced communications have increased the amount of competition firms face, making the market environment more dynamic. The impact of ICT on firm size is complex and subject to ongoing debate among economists, businesspeople, and policymakers.
In conclusion, improved information and communication technologies provide businesses greater leeway in determining their location, contributing to an increased ability to stay competitive without being bound by traditional location constraints. This revolutionizes the marketplace, heralding a future of both challenges and opportunities for businesses of all sizes.