The term given to zones in northern Mexico with factories supplying manufactured goods to the U.S. market. The low-wage workers in the primarily foreign-owned factories assemble imported components and/or raw materials and then export finished goods.
the change from an agricultural to an industrial society and from home manufacturing to factory production, especially the one that took place in England from about 1750 to about 1850.
series of links connecting the many places of production and distribution and resulting in a commodity that is on world market
Form of mass production in which each worker is assigned one specific task to perform repeatedly.
Post Fordist Production
Adoption by companies of flexible work rules, such as the allocation of workers to teams that perform a variety of tasks.
Alfred Weber's "Least Cost" theory
Model developed by Alfred Weber according to which the location of manufacturing establishments is determined by the minimization three critical expenses: labor, transportation, and agglomeration
Location factors related to the transportation of materials into and from a factory.
Location factors related to the costs of factors of production inside the plant, such as land, labor, and capital.
Spatially Variable Costs
an input cost in manufacturing that changes significantly from place to place in its total amount and in its relative share of total costs
Spatially Fixed Costs
An input cost in manufacturing that remains constant wherever production is located.
Bulk Reducing Industry
An industry in which the final product weighs less or comprises a lower volume than the inputs.
Bulk Gaining Industry
An industry in which the final product weighs more or has a greater volume than the inputs.
Break of Bulk Point
A location where transfer is possible from one mode of transportation to another.
The tendency of an economic activity to locate near or at its source of raw material; this is experienced when material costs are highly variable spatially and/or represent a significant share of total costs.
The tendency of an economic activity to locate close to its market; a reflection of large and variable distribution costs.
Industries that are able to shift the location of their facilities in order to take advantage of cheap labor.
Principle that maintains that the correct location of a production facility is where the net profit is the greatest. Therefore in industry, there is a tendency to substitute one factor of production (e.g., labor) for another (e.g., capital for automated equipment) in order to achieve optimum plant location.
An industry for which labor costs comprise a high percentage of total expenses.
A process involving the clustering or concentrating of people or activities. The term often refers to manufacturing plants and businesses that benefit from close proximity because they share skilled-labor pools and technological and financial amenities.
The savings to an individual enterprise derived from locational association with a cluster of other similar economic activities, such as other factories or retail stores.
High Tech Corridor
An area along a limited-access highway that houses offices and other services associated with high-tech industries.
Centers or nodes of high-technology research and activity around which a high-technology corridor is sometimes established
Back Wash Effect
The negative impacts on a region (or regions) of the economic growth of some other region
Theory developed by economist Harold Hotelling that suggests competitors, in trying to maximize sales, will seek to constrain each other's territory as much as possible which will therefore lead them to locate adjacent to one another in the middle of their collective customer base.
the process of industrial deconcentration in response to technological advances and/or increasing costs due to congestion and competition
process by which companies move industrial jobs to other regions with cheaper labor, leaving the newly deindustrialized region to switch to a service economy and to work through a period of high unemployment
Manufacturing based in homes rather than in a factory, commonly found before the Industrial Revolution.
A traditional type of manufacturing in the pre-industrial revolution era, involving handmade goods of high quality manufactured by highly skilled artisans who resided in towns and cities.
Right to work state
State that has prevented a union or company from negotiating a contract that requires workers to join a union as a condition of employment.
New International Division of Labor
Transfer of some types of jobs, especially those requiring low-paid less skilled workers, from more developed to less developed countries.
Economic policies imposed on less developed countries by international agencies to create conditions encouraging international trade, such s raising taxes, reducing government spending, controlling inflation, selling publicly owned utilities to private corporations, and charging citizens for more services.
To change from government or public ownership or control to private ownership or control.
Non-Government Organizations (NGOs)
Organization not run by a government but by a charity or private organization that supplies resources and money to local businesses and causes advancing economic and human development.
The procuring of services or products, such as the parts used in manufacturing a motor vehicle, from an outside supplier or manufacturer in order to cut costs
Rather than keeping a large inventory of components or products; companies keep just what they need for short term production and now parts are shipped quickly when needed.