Chapter 10 and 11 part 2 Flashcards
Location Theory
Address the question of what economic services are located where and why
Containerization
When people started putting goods in containers in ships. Loading and shipping of containers into ships
Tarrifs
a tax on goods and services that are imported into a country.
Least cost theory
By Weber it says that firms or business locate in a place that minimizes transportation costs, agglomeration costs and labor costs
Multiplier effect
Due to agglomeration as more firms from the same industry locate in particular areas more resources becomes available. If you put something into a business or put it somewhere you should get more out of it.
Fordist
System of mass production attributed to Henry Ford and his car assembly line.(fordism )
Agglomeration
When firms or companies from the same industry locate near each other or cluster in a relatively small area in order to draw the same set of resources.
Spill over effect
When one place industrialized and becomes stable and then it’s neighbors start to industrialize. Rotterdam developed as a city because it was located on the rhine river where there is a lot of resources not because the city has its own resources.
Rust Belt
The place where industrialization starter originally was in the New England region but as they deindustrialized they became known as the rust belt.
Cottage Industry
This is what people practiced before the Industrial Revolution. They made things at home by themselves and carried business activities at home.
Break of Bulk Point
A location where large shipments of goods are broken up into smaller containers for delivery to local Markets.
Vertical Integration
When a company takes control of two or three stages of its supply chain instead of depending on other countries.
When a company owns different sectors like Ford had a car company, a steel company, other parts company e.t.c
Outsourcing
When transnational companies put their factories in peripheral countries where labor costs are cheaper for them.
Sunbelt
A region of the United States searching from the south east to the south west
Just in time Delivery
When parts and materials arrive just before they are needed. suppliers must be near factoriest to keep their short notice.
