UNIT 7 Flashcards
why was their a manufacturing boom in the 20th century
because of Henry Ford’s assembly line
what was the dominant mode of mass production known as in the 20th century
fordists industry
where did Ford produce raw materials and manufacture goods
Dearborn, Michigan
what is vertical integration
owning every step in a manufacturing process
what is post fordist production
focuses on producing when needed
Just-in-time delivery
Rather than keeping a large inventory of products, companies keep just what they need for short-term production and new parts are shipped quickly when needed
why have many older manufacturing areas experienced deindustrialization
because of advances in flexible production
Break of bulk
something going from one transportation system to another, ex. ship to train
four asian tigers
South Korea, Hong Kong, Singapore, Taiwan
why was Singapore able to develop quickly
because of their major shipping lane
what caused China to become more wealthy and industrialized
when they abandoned communism
why do countries move to take advantage of China
Cheap Labor and SEZs
Who did China surpass as the worlds second largest economy in 2010
Japan
what are factors of industrial location
location of raw materials
labor (price, skill, amount)
Market
transportation costs
who created least costs theory and when
Alfred Weber in 1909
what does least cost theory do?
Explains the best location of a manufacturing establishment in terms of three basic expenses
what are the 3 factors in least cost theory
transportation cost, labor, agglomeration
transportation costs
The site must entail the lowest possible cost of moving
A) raw materials to the factory
B) finished products to the market
what was the most important factor of least cost theory according to weber
transportation cost
Labor
Higher labor costs limit profits, so a factory might do better farther from raw materials and markets if cheap labor is available
agglomeration
When a large number of enterprises cluster in the same area, they can provide assistance to each other through shared talents, services, and facilities
three main ways to measure development
Gross National Product (GNP)
Gross Domestic Product (GDP)
Gross National Income (GNI)
Gross National Product (GNP)
the total value of all the goods and services produced by the people and businesses of a country, both within its borders and abroad