| Term | Definition |
|---|
| agglomeration | 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. |
| distance decay | The various degenerative effects of distance on human spatial structures and interactions. |
| energy | Another factor in the location of industry. |
| friction of distance | The increase in time and cost that usually comes with increasing distance. |
| Industrial Revolution | The term applied to the social and economic changes in agriculture, commerce and manufacturing that resulted from technological innovations and specialization in late-eighteenth-century Europe. |
| infrastructure | The foundations of a society: urban centers, transport networks, communications, energy distribution systems, farms, factories, mines, and such facilities as schools, hospitals, postal services, and police and armed forces. |
| labor | Any kind of work. |
| least cost theory | Model developed by Alfred Weber according to which the location of manufacturing establishments is determined by the minimization of three critical expenses: labor, transportation, and agglomeration. |
| location theory | A logical attempt to explain the locational pattern of an economic activity and the manner in which its producing areas are interrelated. |
| raw materials | The resources involved |
| secondary industries | Less dependent on resource location. |
| substitution principle | When relative labor costs decline or when land rent goes down, an industry can sustain an increase in transport costs. |
| transportation | Are crucial in industrial location. |
| variable cost | Such as energy supply, transport expenses, labor costs, and other needs. |
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