5.4 - Location Flashcards
regions identified by government to have relatively high unemployment and low incomes; need regeneration through financial assistance
assisted areas (enterprise zones)
products that increase in weight during the product process
bulk-increasing/weight-gaining (industries)
raw materials are heavier and more costly to transport than the final product
bulk-reducing/weight-losing (industries)
a business locates near other organizations that operate in similar or complementary markets
clustering
business does not gain any cost-reducing advantages from locating in a particular place; i.e, they can locate anywhere
footloose organization
financial enticements offered by the state to business to locate in a certain area/region
government incentives
reluctance to relocate due to inconvience of moving, even when competitive advantages for the location are gone
industrial inertia
transporation, communication and support network in a certain area
infrastructure
use of organization’s own people and resources to complete a task that would have been outsourced
insourcing
geographical position of a business
location
extension of outsourcing, which involves relocating business functions overseas
offshoring
transferring internal business activities to an external organization in order to reduce costs and increase productivity
outsourcing (subcontracting)
reverse of offshoring, i.e, transfer of business operations back to country of origin
reshoring
outsourced firms that undertake non-core activities for an organization
subcontractors
