Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
19 Cards in this Set
- Front
- Back
|
Where is Industry Distributed?
|
originated in northern England and southern Scotland and diffused to Europe and North America in nineteenth century and other regions in twentieth century
|
|
|
The three largest Industrial regions in the world
|
North American, Europe, and East Asia
|
|
|
Location Theory
|
location pattern of economic activity
formulated by Alfred Weber |
|
|
Just in Time delivery
|
shipments of parts and materials to arrive at a factory moments before they are needed.
|
|
|
Situation Factors
|
involve transporting materials to and from a factory
proximity to materials and markets |
|
|
Site Factors
|
result from the unique characteristics of a location
labor,land, and capital |
|
|
Transportation Modes
|
Ship- attractive for transport very long distance, per kilometer cost very low.
Rail- used to ship to destinations that take longer than one day to reach, such as east coast to west coast.take longer to load. Truck- short distance delivery Air- most expensive, small bulk, high value |
|
|
Agglomeration Economies
|
the benefits that firms obtain by locating near each other
also apply to service and high tech companies |
|
|
Economies of Scale
|
The larger the scale, the smaller the per unit cost
|
|
|
Outsourcing
|
turning over much of the responsibility for production to independent suppliers
|
|
|
Maquiladoras
|
plants in Mexico near U.S border, export finished product to the U.S
|
|
|
New International Division of Labor
|
selective transfer of some jobs to developing countries
|
|
|
Primary reasons why U.S has lost manufacturing jobs
|
outsourcing
|
|
|
Why some manufacturing jobs are coming back to U.S
|
proximity to skilled labor and just in time delivery
|
|
|
Traditional Trade vs. Intra- Industry Trade
|
in traditional trade countries export products that have comparative advantage, import products of scarcity. In intra-industry trade, import and export more or less the same goods
|
|
|
Paul Krugman explain Intra Industry Trade
|
the assumption of economics of scale in production and a preference for diversity in consumption.
|
|
|
Why do firms cluster geographically
|
Saving in production costs that occur when firms locate near one another
|
|
|
Comparative advantage
|
areas tend to specialize in the production of those items they have the greatest relative advantage over the other areas.
|
|
|
International division of labor
|
the specialization, by countries, in particular products and services for export.
Transnational corporations (TNC) |
