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Chapter 12 Vocabular

Words and definitions for the 33 vocabulary words in Chapter 12.

TermDefinition
Cottage Industries Goods made generally by hand or with low technology within a home or small workshop.
Economies of Scale Savings in production cost which stem from increased production of a good.
Industrial Revolution The cluster of inventions and innovations which had brought large-scale economic changes in agriculture, commerce and manufacturing in Europe, during the late 18th century.
Hinterland Economic production areas which are located inland and connected to the outside via a port.
Situation Position of a place in relation to its surrounding environment or context.
Network Interconnected nodes which lack a center.
First Mover Advantage The benefits earned by a product or service by being first to market.
Secondary Hearths An area where a innovation or idea diffuses to, and then it is diffused more broadly from there.
Globalization Set of processes which heighten interaction, increase interdependence, and deepen relationships across the borders of different countries.
Fordist A system of manufacturing in which raw materials are brought to a location and its components along with the final product are produced at the same location, then globally shipped.
Vertical Integration The merging of business that serve different steps in one commodity chain.
Location Theory Understanding of the distribution of cities, industry, services, or consumers with the intention of explaining why places are chosen as sites of production or consumption.
Agglomeration Cost advantages which arise from businesses with similarities cluster in the same location.
Least Cost Theory Determination of the location for manufacturing based on minimizing 3 important expenses: labor, transportation, and agglomeration.
Friction of Distance The difficulty in time and cost associated with increasing distance.
Intermodal A point where 2 or more modes of transportation meet.
Capitalism Economic system where people, corporations, and states produce their own good and services and sell to the world market with the intention of getting a profit.
Commodification The transition of goods and services into products which can be bought, sold, or traded.
Global Division of Labor Understanding of the distribution of cities, industry, services, or consumers with the intention of explaining why places are chosen as sites of production or consumption.
Time-space Compression Increasing levels of connectedness between world cities caused by improvements in communication and transport networks.
Just-in-time Delivery Production system in which parts are delivered as needed to the respective assembly line, so that they are not warehoused, stored, or overproduced.
Spatial Fix The movement of production from one site to another for cost advantages of the new site, based on place.
Node A connection point within a network, where goods and ideas flow in and out through the network.
Commodity Chain Steps in the production of a good, from its design and raw materials to its production, marketing, and distribution.
Outsourcing Hiring employees outside the home country of a company. in order to reduce the cost of labor for their goods and services.
Connectivity The position of a place or area in relation to other places in its respective network.
Global Sourcing The tapping into of companies that specialize in production globally to manufacture goods.
Global Production Networks The pattern of flow from raw material to global product to dispersal or reuse of products. Shows all the places connected by production.
Newly Industrializing Countries (NIC) States that are experiencing growth in industrial or service economies and increasing prescence in global trade.
Break of Bulk Point Place where goods and transferred from one mode of transportation to the other.
Deindustrialization Decline in industry in a region or economy. Caused by companies move industry to other regions, or mechanize production.
Rust Belt A region of the northeast portion of the United States which was once a prominent manufacturing region turned to a deindustrialized region.
High-Technology Corridor Areas along or near major transportation corridors that are devoted to the research, development, and sale of high-technology products.
Created by: Lucas Booher
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