39 terms

Chapter 11--Industry

Rubenstein and Fellman, AP Human Geography
manufacturing region
a region in which manufacturing activities have clustered together. The major US industrial region has historically been in the Great Lakes, which includes the staes of Michigan, Illinois, Indiana, Ohio, New York, and Pennsylvania. Industrial regions also exist in southeastern Brazil, central England, around Tokyo, Japan, and elsewhere
a location along a transport route where goods must be transferred from one carrier to another
bulk-gaining industry
an industry in which the final product weighs more or has a greater volume than the inputs
bulk-reducing industry
an industry in which the final product weighs less or comprises a lower volume than the inputs
cottage industry
small-scale industry that can be carried on at home by family members using their own equipment
Mass production where every worker does a single task repeatedly. (post: flexible work rules with a team working on tasks)
Industrial Revolution
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
labor intensive
type of industry in which labor cost is a high percentage of expense
a decision by a corporation to turn over much of the responsibility for production to independent suppliers
site characteristics
characteristics that result from the unique characteristics of a location, such as land, labor, and capital
situation characteristics
location factors related to the transportation of materials into and from a factory
industrial inertia
the tendency for firms to remain where they are, even though the original reasons for location no longer apply (i.e. agglomeration, extended economics, skilled labor, training)
non-basic industry
industries that sell their products primarily to consumers in the community
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.
urban planning term for previously developed land; may be contaminated and require cleanup
Hotelling model
(dealt with locational interdependence) the location of industries can't be understood without reference to the location of other industries of like kind; two similar vendors would locate next to each other in the middle of a market area to maximize profit (or beach/street as his model suggests)
mass production
the production of large quantities of goods using machinery and often an assembly line
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
economies of scale
as a company produces larger numbers of a particular product, the cost of each of these products goes down
locational interdependence theory
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 (beach street)
location theory
a logical attempt to explain the locational pattern of economic activities & the manner in which its producing areas are interrelated
Export Processing Zone (EPZ)
zones established by many countries in the periphery and semi-periphery where they offer favorable tax, regulatory, and trade arrangements to attract foreign trade and investment
basic industry
an industry that sells its product outside of the community, bringing money into the community
the basic support systems needed to keep an economy going, including power, communications, transportation, water, sanitation, and education systems
raw materials
unprocessed extractive or agricultural products, such as mineral ore, lumber, wheat, corn, fruits, vegetables, and fish (think primary sector)
assembly line
in a factory, an arrangement where a product is moved from worker to worker, with each person performing a single task in the making of the product
Alfred Weber
wrote "Theory of the Location of Industries" published in 1909. It is often compared to von Thunen's agriculture model because both models are examples of location theories that explain why economic activity is patterned as it is. He identified points for particular inter-related activities, such as manufacturing plants, mines, and markets (least-cost theory)
wealth in the form of money or property owned by a person or business and human resources of economic value
term describing decline of manufacturing in old industrial areas in the late twentieth century as companies shifted production to low wage centers in the South and West or in other countries
footloose industry
industry in which the cost of transporting both raw materials and finished product is not important for the location of firms
Varignon Frame
a system of weights and pulleys used by geographers to help determine optimum location. For example, the weights might represent the relative cost of transporting particular goods to or from particular locations, to help a firm decide the most cost effective site to locate a prospective production facility (plane/table solution)
substitution principle
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
raw material orientation
the location of the manufacturing plant in relation to the source of raw materials. While most industries would prefer to locate near their markets in order to save the recurring costs of transportation, some industries - especially those that involve a loss of weight, bulk, or perishability in the process of manufacturing - might prefer to locate near their source of raw materials
market orientation
the location of the manufacturing plant in relation to the market. This would be especially advantageous for bulk-gaining industries.
regional multiplier
a calculation which shows the additional, or indirect, change to an economy as a result of an expansion or contraction by a business or industry. Multipliers can be used to estimate how a new manufacturing plant will impact a community through the jobs it creates, the incomes it generates, and the additional spending that occurs as a result of the initial development activity. In contrast, the multiplier can be used to estimate the economic loss that would occur with the closing of a plant.
primary vs secondary industrial location
(comparative- vs.)Von Thünen only had to deal with primary industries, which are obviously located adjacent to the natural resources (farming, ranching,...). Secondary industries are less dependent on resource location; they deal with more variable costs such as energy, transportation, and labor.
primary industrial regions
represent the strongest (and mostly the original) industrial zones (all in the Northern Hemisphere)--Eastern North America, Western and Central Europe, Russia and Ukraine, Asia (Japan, and recently China and the 4 Tigers)
secondary industrial regions
states and regions that have been intensely developing and urbanizing in recent decades; typically represent more semi-peripheral economies (e.g., Mexico, Brazil, South Africa, Egypt, India, Australia).
Ullman's conceptual frame
Edward Ullman proposed that trade was an interaction based on three phenomena:
-Complementarity: when two regions, through trade, can specifically satisfy each other's demands.
-Intervening opportunity: presence of a nearer opportunity diminishes the attractiveness of sites farther away.
-Transferability: the ease (or difficulty) in which a good may be transported from one area to another.