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LP - Chapter 11

Lake Park - AP Human Geography - Chapter 11 Vocabulary

Break-of-Bulk Point A location where transfer is possible from one mode of transportation to another
Bulk-Gaining Industry An industry in which the final product weighs more or comprises 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 Manufacturing based in homes rather than in homes rather than in a factory
Fordist Production Form of mass production in which each worker is assigned one specific task to perform repeatedly
Post-Fordist Production Adoption by companies of flexible work rules, such as the allocation of workers to teams that perform a variety of tasks
Labor-Intensive Industry An industry for which labor costs make up a high percentage of total expenses
Maquiladoras Factories built by U.S. companies in Mexico near the U.S. border, to take advantage of low labor costs in Mexico.
New International Division of Labor Transfer of some types of jobs, especially those requiring low-paid, less skilled, workers, from more developed to less developed countries
Outsourcing The decision by a corporation to turn over much of the responsibility for production to independent suppliers
Site Factors Location factors related to the costs of factors of production inside the plant, such as land, labor, capital
Situation Factors Location factors related to the transportation of materials into and from a factory
Agglomeration A process involving the clustering or concentrating of people or activities. Often refers to manufacturing plants and businesses that benefit from close proximity because they share skilled-labor pools and technological and financial amenities
Deglomeration The process of industrial deconcentration in response to technological advances and/or increasing costs due to congestion or competition
Deindustrialization Process by which companies move industrial jobs to other regions with cheaper labor, leaving the newly industrialized region to switch to a service economy and to work through a period of high unemployment
Friction of Distance The increase in time and cost that usually comes with increasing distance
Global Division of Labor Phenomenon whereby corporations and others can draw from labor markets around the world, made possible by the compression of time and space through innovation in communication and transportation systems.
Just-In-Time Delivery 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
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
Location Theory A logical attempt to explain the locational pattern of an economic activity and the manner in which its producing areas are interrelated
Locational Interdependence Theory developed by Harold Hotelling that suggests competitors 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
Outsourced With reference to production, to turn over in part or in total to a third party
Sunbelt The South and Southwest regions of the United States
Technopole Centers or nodes of high-technology research and activity around which a high-technology corridor is sometimes established
Variable Costs Costs that change directly with the amount of production
Footloose A descriptive term applied to manufacturing activities for which the cost of transporting material or product is not important in determining location of production
Foreign Direct Investment The purchase or construction of foreign factories and other fixed assets by transnational corporations
Infrastructure The basic services, installations, and facilities needed to support industrial, agricultural, and other economic development
In-Transit Privilege The application of a single-haul freight rate from origin to destination even though the shipment is halted for processing en route
Line-Haul Costs The costs involved in the actual physical movement of goods; costs of haulage
Locational Interdependence The circumstance in which the locational decision of a particular firm is influenced by the locations chosen by competitors
Multiplier Effect The direct, indirect, and induced consequences of change in an activity: in industrial agglomerations, the cumulative processes by which a given change sets in motion a sequence of further industrial employment and infrastructure growth
Offshoring The relocation of business processes and services to a lower-cost foreign location
Spatially Fixed Costs An input cost in manufacturing that remains constant wherever production is located
Spatially Variable Costs An input cost in manufacturing that changes significantly from place to place in its amount and its relative share of total costs
Transnational(Multinational) Corporation (TNC) A large business organization operating in at least two separate national economies
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