unit 8 Flashcards

(61 cards)

1
Q

why is one location more profitable for a factory than others ? situation factors

A

critical to a firm that wishes to minimize transport costs

costs associated with the established transportation networks accessible from a specific place

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2
Q

why is one location more profitable for a factory than others ? site factors

A

costs resulting from the unique characteristics of a location (labor, capital and land)

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3
Q

where do manufacturers try to locate factories?

A

as close as possible to its inputs and markets; the farther something is transported, the higher the costs

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4
Q

bulk-reducing industry

A

raw materials weigh more than the final products, so plant location is near resources to reduce transportation costs

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5
Q

bulk-reducing industry example

A

a paper mill or mining of metals like copper

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6
Q

bulk-gaining industry

A

production of a product that gains weight while being produced, so plant location is near market to reduce the costs of transportation

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7
Q

bulk-gaining industry example

A

fabrication of parts and machinery from steel and other metals

plants where beverages are bottled

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8
Q

single market manufacturers

A

specialized manufacturers with only 1 or 2 customers, best factory location is in close proximity to the customers

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9
Q

single market manufacturers example

A

producers of specialized components attached to clothing like buttons, zippers, or pins

makers of parts for motor vehicle

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10
Q

perishable products

A

products that spoil easily, companies need to be close enough to their markets so that they do not spoil or become dated during transportation

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11
Q

perishable products example

A

food products (bakers and milk bottlers)

time sensitive products (newspapers)

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12
Q

break of bulk point

A

when companies use multiple transport modes for products, it is a location where transfer among transportation modes is possible

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13
Q

why do firms seek the lowest cost mode of transport for products?

A

the cost decreases at different rates for ship, rail truck, and air; loading and unloading expenses differ by mode of transportation

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14
Q

break of bulk point example

A

seaports and airports

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15
Q

weber’s theory

A

alfred weber’s least cost theory

said the location of a plant/factory is a balance between the locations of raw materials, the labor force, and the markets

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16
Q

world development

A

describes the wealth and well being of a country as it grows and prospers

raising the living standards of the poorest countries and reducing disparities among them

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17
Q

poor countries are often referred to as __

A

third world, less developed countries, or the developing world

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18
Q

rich countries are often referred to as __

A

first world, more developed countries

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19
Q

GNI per capita

A

gross national income, measures how much is made in the country

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20
Q

purchasing power parity (PPP)

A

measures prices at different locations

based on the law of one price; if there are no transaction costs for a product, then the price for that product should be the same at every location

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21
Q

subjective well being

A

how people experience and evaluate their lives and specific domains and activities in their lives

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21
Q

human development index (HDI)

A

tells us the quality of life in a country

measure of development that includes per capita income, education level and literacy rate, and life expectancy

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21
Q

two views on development disparities

A

underdevelopment is a function of progress

underdevelopment is essential to a global economic structure that began with colonialism and persists with neocolonialism

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22
Q

the bottom billion

A

according to Collier, there is a 3 way stratification of the world’s population

the fortunate billion (affluent societies)
the majority (developing societies)
the bottom billion (stagnant economies)

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23
the Brandt line
slightly old fashioned way of dividing the globe between rich and poor countries more wealthy countries are typically in the global north more poorer countries are in the global south like Africa and asia
24
possible solutions to development crisis
accelerate economic growth by way of industrialization, but requires large portion of a country's economy to overcome this countries may begin by manufacturing lower value added products, like textiles, before attempting higher value added products, like electronics
25
primary sector
extraction of raw materials, farming/fishing
26
secondary sector
finished goods, manufacturing, utilities like electricity and gas, construction
27
tertiary sector
services, retail, financial services, communication, hospitality and leisure, real estate, information technology
28
quaternary sector
education, public sector, research and development
29
quinary sector
sector of jobs that involve making high ranking decisions in a society
30
rostow's stages of development
describes country's progression in five stages transforming them from least to most developed countries traditional society, preconditions for take off, take off, drive to maturity, age of high mass consumption
31
wallerstein world systems theory
world economy has a 3 tier structure core : generates wealth in economy like the US periphery : generates less wealth in world economy like congo semi-periphery : buffer zone between core and periphery, both can exist like in mexico
32
globalization
process by which businesses and other organizations develop international influence
33
outsourcing
obtain products from an outside or foreign supplier, especially in place of an internal source
34
free trade zones
designated areas where foreign companies can warehouse goods without paying taxes until they move goods into the marketplace
35
agglomeration
clustering of similar businesses in the same area for certain benefits (ex: hotels and restaurants near airports)
36
just in time delivery
shipment of parts and materials to arrive at a factory moments before they are needed
37
maquiladoras
jobs at companies are outsourced to mexico because mexican workers accept lower wages than american workers and factories are located across the border, which will reduce transportation costs
38
fair trade
movement that aims to improve economic prospects for producers, laborers, and farmers in LDCs
39
gdp adjusted for ppp shows __
how much you can buy with your money
40
when is technology first introduced in the stages of rostow's development index?
stage 2 : preconditions of take off
41
GII
shows influence of women in a society by measuring their income, participation in labor force, and political influence
42
according to weber, which cost of production is the most important factor in locating a new industry?
transportation
43
per capita income
the average amount of money earned by each person in a country
44
deindustrialization
process by which companies move industrial jobs to other regions
45
footloose industry
can be located at any place without effect from factors like labor and capital, because they do not change bulk
46
vanuatu
port vila
47
the federated states of micronesia
palikir
48
solomon islands
honiara
49
australia
canberra
50
palau
ngerulmud
51
samoa
apia
52
naru
yaren
53
papua new guinea
port moresby
54
marshall islands
majuro
55
tonga
nuku'alofa
56
tuwalu
funafuti
57
kiribati
south tarawa
58
new zealand
wellington
59