53 terms

HGAP Vocab 6 (Agglomeration - Weber Model)

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agglomeration
Grouping together of many industries in a single area for collective or cooperative use and sharing of infrastructure and labor resources
bid rent theory
geographical economic theory that refers to how the price and demand on real estate changes as the distance towards the Central Business District (CBD) increases. (Price increases closer to cities)
bulk-gaining industries
An industry in which the final product weighs more or comprises a greater volume than the inputs. (closer to market and further from supplies in the Weber model)
bulk-reducing industries
An industry in which the final product weighs less or comprises a smaller volume than the inputs. (closer to supplies and further from market in the Weber model)
capitalist world economy
profit-oriented global economy based on production for sale (commercial production)
compressed modernity
rapid economic and political change that transforms a country into a stable nation with a democratizing government, a growing economy, and an increasing numbers of universities (non government controlled institutions)
comparative advantage
the ability of an individual, company, or country to produce a good or service at a lower cost than other producers.
conglomerate corporations
Corporations that comprise of many smaller firms that support the overall industry
deglomeration
the dispersal of an industry that formerly existed in an established agglomeration
deindustrialization
process by which companies move industrial jobs to other regions with cheaper labor, leaving the newly de-industrialized region to switch to a service economy and to work through a period of high unemployment
dependency theory
An analysis that puts primary responsibility for global poverty on rich nations
ecotourism
a form of tourism, based on the enjoyment of scenic areas, that aims to provide an experience of nature or culture in an environmentally sustainable way
energy consumption
using energy; an indicator of development - MCDs tend to consume much more energy per capita then LCDs do
fixed costs
an activity cost (as of investment in land, plant, and equipment) that must be met without regard to level of output (amount of product sold or exported); an input cost that is spatially constant.
fordist production
the manufacturing economy and system derived from assembly-line mass production and the mass consumption of standardized goods
four asian tigers/dragons
South Korea (largest)
Taiwan (moving towards high tech)
Singapore (Center for information and technology)
Hong Kong(Break of Bulk Point)

because of their booming economies.
footloose industry
term applied to manufacturing activities for which the cost of transporting material or product is not important in determining location of production, showing no particular orientation.
friction of distance
the increase in time and cost that usually comes with increasing distance.
global warming
The increase in earth's temperature caused primarily by the burning of fossil fuels
gender inequality index (GII)
Measures inequality between men and women, the higher the score the higher the inequality between the genders
GDP & GDP per capita
Gross domestic product;
GDP - The value of the total output of goods and services produced in a country during a year

GDP per capita - the GDP divided by the amount of people in the country
gross national income (GNI)
The total value of goods and services produced by a country per year plus net income earned abroad by its nationals; formerly called "gross national product."
industrial revolution
A period in the 18th and 19th century where great advances were made in agriculture, manufacturing, and transportation in Britain, which eventually spread throughout the world causing global industrialization
infrastructure
A collective term that refers to public works such as a system of highways, railroads, and airports, which may affect location of businesses etc.
international division of labor
The process where the assembling procedures for a product are spread out through different parts of the world
just-in-time delivery
Method of inventory management made possible by efficient transportation and communication systems, planning that what they need for longer-term production will arrive when needed.
labor intensive industries
An industry for which labor costs comprises a high percentage of total expenses
location theory
The theory that profit of a business is maximized by choosing a location where production costs are lowest as well as land is cheapest and the distance from the market is the smallest. used to describe why many businesses choose their locations in a given area and is key for describing complicated dynamics of industry.
locational interdependence theory
The influence on a firm's locational decision by locations chosen by its competitors.
maquiladoras
Factories built by U.S. companies in Mexico near the U.S. border, to take advantage of much cheaper labor costs in Mexico.
microloans
Very small loans to impoverished borrowers who typically lack collateral, steady employment and a verifiable credit history
modernization model
A model of economic development most closely associated with the work of economist Walter Rostow. The modernization model (sometimes referred to as modernization theory) maintains that all countries go through five interrelated stages of development, which culminate in an economic state of self-sustained economic growth and high levels of mass consumption.
NAFTA (north american free trade agreement)
signed in 1995 by Mexico, U.S., and Canada to eliminate barriers to free trade
outsourcing
Transfer of business components to a third party for reasons such as cheaper labor and easier access to labor.
post-industrial societies
economically dependent upon the production and distribution of services, information, and knowledge.
primary economic activities (of primary sector)
extracts or harvests products from the earth, includes the production of raw material and basic foods, includes agriculture (both subsistence and commercial), mining, forestry, farming, grazing, hunting and gathering, fishing, and quarrying.
Also includes packaging and processing
secondary economic activities (of secondary sector)
activities that transform raw materials into usable products (manufacturing)
tertiary economic activities (of tertiary sector)
The portion of the economy concerned with transportation, communications, and utilities, sometimes extended to the provision of all goods and services to people in exchange for payment
quaternary economic activities (of quaternary sector)
Service sector industries concerned with the collection, processing, and manipulation of information and capital. Examples include finance, administration, insurance, and legal services.
rostow's stages
a model of economic development that describes a country's progression which occurs in five stages transforming them from least-developed to most-developed:

1) Traditional society, subsistence, barter, agriculture

2)Transitional stage, specialization, surplus, infrastructure

3) Take-off stage, industrialization, growing investment, political change

4) Drive to technological maturity, diversification, innovation, less reliance on imports, investment

5) High mass consumption (modernization) consumer oriented goods, service sector
self-sufficiency model
model which encourages countries to spread investment as equally as possible across all sectors of the economy and in all regions, and create barriers to limit importing of goods from other countries

benefits are as follows:
-residents and businesses share benefits of development
-rural income keeps up with urban ones
-reducing poverty becomes more important than creating a few wealthy consumers
-encourages independence of its companies
single market manufacturers
manufacturers that produce goods for one type of market
site factors
Location factors related to the costs of factors of production inside a factory, such as land, labor, and capital.
situation factors
Location factors related to the transportation of materials into and from a factory.
special economic zones
specific area within a country in which tax incentives and less stringent environmental regulations are implemented to attract foreign business and investment
trading blocs
groups of countries with formalized systems of trading agreements
transnational corporations
large corporations that are headquartered in one country but sell and produce goods and services in many countries
value added productivity
Extra money added to a product for laboring cost
united nations' millennium goals
8 goals to be met for 2015, released in 2000, saying:
1) eradicate extreme poverty and hunger
2) achieve universal primary education
3) promote gender equality and empower women
4) reduce child mortality
5) improve maternal health
6) combat HIV/AIDS malaria and other diseases
7) ensure environmental sustainability
8) global partnership for development
variable costs
a cost that varies with the level of output.(i.e.: increased cost of shipping when shipping heavier packages), may affect factory location
variable revenue analysis
An approach to industrial location theory concerned with the demand side of the industrial location problem, as opposed to the cost side addressed in variable cost analysis
weber model
Alfred Weber formulated a theory of industrial location in which an industry is located where the transportation costs of raw materials and the final product is a minimum. (looks like a triangle)
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special thank you to Taha Khalilullah for his help in making this quizlet!
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