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chapter 12
| Term | Definition |
|---|---|
| cottage industries | production of goods in a home or small workshop, typically by hand or with low technology |
| economics of scale | savings in cost of production that comes from increasing production of a good |
| industrial revolution | cluster of inventions and innovations that brought large-scale economic changes in agriculture, commerce- and manufacturing in late eighteenth century Europe |
| hinterland | area of economic production that is located inland and is connected to the world by a port |
| situation | position of a city or place relative to its surrounding environment or context |
| network | set of interconnected nodes without a center |
| first mover advantage | benefit a service or product receives by being the first to market |
| secondary hearths | area to which an innovation diffuses and from which the innovation diffuses more broadly |
| globalization | processes heightening interactions, increasing interdependence, and deepening relations across country borders. |
| fordist | manufacturing system in which raw materials are brought into a central location and component parts and the final product are produced at the same location and then shipped globally |
| vertical integration | merging of businesses that serve different steps in one commodity chain |
| location theory | understanding the distribution of cities, industries, services, or consumers with the goal of explaining why places are chosen as sites of production or consumption |
| agglomeration | cost advantages created when similar businesses cluster in the same location. For example, car manufacturers cluster in a city or region to tap into a skilled labor force and access infrastructure, services, and technology |
| least cost theory | determining the location of manufacturing based on minimizing three critical expenses: labor, transportation, and agglomeration |
| friction of distance | difficulty in time and cost that usually comes with increasing distance |
| intermodal | where two or more modes of transportation meet |
| capitalism | economic system where people, corporations, and states produce goods and services and trade them on the world market with the goal of making a profit |
| commodification | transformation of goods and services into products that can be bought, sold, or traded |
| global division of labor | ability of corporations to employ labor from around the world, made possible by the compression of time and space through innovations in communication and transportation systems |
| time space compression | increasing connectedness between world cities from improved communication and transportation networks |
| just in time delivery | production system in which parts are delivered as needed to the assembly line so that parts are not warehoused, stored, or overproduced |
| spatial fix | movement of production from one site to another based on the place-based cost advantages of the new site |
| node | connection point in a network, where goods and ideas flow in, out, and 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 inputs for the good or service |
| connectivity | position of a place or area relative to others in a network |
| global sourcing | tapping into companies that specialize in production around the world to manufacture goods |
| global production networks | patterns of flows from raw material to global product to disposal or reuse of products that shows all the places connected through production |
| new industrializing countries | states with growing industrial and service economies and an increasing presence in global trade |
| break of bulk point | place where goods are transferred from one form of transport to another. For example, in a port, cargoes of ships are unloaded and put on trains, trucks, or riverboats for inland distribution |
| deindustrialization | decline inindustry in a region or economy. happens when companies move industry to other regions or mechanize production |
| rust belt | region in the northeastern United States that once had an extensive manufacturing industry but has been deindustrialized during the post-Fordist era |
| high technology corridor | areas along or near major transportation corridors that are devoted to the research, development, and sale of high-technology products |
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