AP Human Geography Chapter 12 Industry and Services
Terms in this set (35)
The loading and shipping of containers on to ships. This has decreased the use of break-of-bulk shipping
Economies of Scale
Increasing production of a good so that the average cost of the good declines. The transition from cottage industries to the industrial revolution happened in the context of changing economies of scales
Small-scale production of goods, typically by hand or with low technology. In a home or small workshop. Families worked together in a community, each creating a component of a finished good or the good itself
In the early 1800s, during the Industrial Revolution in mainland Europe, the criteria was as followed: sites needed to be close to resources and connected to ports by water
When industry developed in one area, it also improved economic growth in the port cities to which they were linked by river or canal
An area of a port from which goods can be produced, delivered to the port, and then exported
First mover advantage
The advantage Western Europe's industrialization had because of an economic head start, putting the region at the center of a quickly growing world-economy in the nineteenth century.
The industrial hearths that were established in eastern North America, western Russia and Ukraine, and East Asia after the original Western Europe hearths
Industry in which the cost of transporting both raw materials and finished product is not important for the location of firms.
A highly organized and specialized system for organizing industrial production and labor. Named after Henry Ford, features an assembly-line production of standardized components for mass consumption
Ownership by the same firm of a number of companies that exist along a variety of points on a commodity chain
Friction of Distance
The increase in time and cost that usually comes with increased distance over which commodities must travel
The effects of distance on interaction, generally the greater the distance the less interaction.
Created by Alfred Marshall, argued that a particular industry clusters in one area (agglomeration). Marshall held that localized industries could attract workers with industry-specific skills, be able to share information, and attract support services specific to the industry. Predicted where businesses will or should be located.
Least cost theory (Weber)
Weber's theory which focused on a factory owner's desire to minimize three categories of cost.
Created by Alfred Marshall, a process involving the clustering or concentrating of people or activities.
a system of industrial production characterized by a set of processes in which the components of goods are made in different places around the globe and the brought together as needed to meet consumer demand
Product life cycle
The introduction, growth, maturation and decline of a product
The process through which something is given monetary value. It occurs when a good or idea that previously was not regarded as an object to be bought and sold is turned into something that has a particular price and that can be traded in a market economy.
Industry that makes something that gains volume or weight during production, finished product weighs more than the raw materials. Industry needs to be located near where the product is sold to minimize transportation costs. More expensive to transport final product.
An industry in which the raw materials weigh more than the final product. In this case the industry needs to be located near its source of raw materials to minimize transportation costs
Global division of labor
Phenomenon whereby corporations and others can draw from labor markets around the world, make possible by the compression of time and space through technological innovations
Because of technological advancements, time and friction of distance does not have as much impact on the export of products and information
Method of inventory management made possible by efficient transportation and communication systems, whereby companies keep on hand just what they need for near term production, planning that what they need for longer term production will arrive when needed
The movement of production from one site to another based on the place-based advantages of a new site
Connection point in a network, where goods and ideas flow in, out, and through the network
Connected to global manufacturers. The process of obtaining goods and services from the global market across geopolitical boundaries.
The procuring of services or products from an outside supplier or manufacturer in order to cut costs
Places where two or more modes of transportation meet (air, road, rail, ship, etc)
When companies move jobs to other regions with cheap labor, leaving the newly deindustrialized region to switch to a service economy and work through a period of high unemployment
Newly industrializing countries
States that underwent industrialization after World War II and whose economies have grown at a rapid pace. BRICS.
Where cargo is transported from one mode of transportation to another (ship to truck)
A situation in which a country, individual, company or region can produce a good at a lower opportunity cost than a competitor.
When the locational decision of one firm is influenced by locations chosen by its competitors. Creates spatial monopoly. Maximizes return, does not minimize costs. Location of an industry cannot be understood without reference to other industries of the same kind.
Zone of Profitability Theory
The correct location of a production facility is where the net profit is the greatest. Substitution principle. Footloose firms. Manufacturing plants choose locations where they can maximize profit.
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