7.2 Flashcards
What is multiplier effect?
Sales and profits in sales for the busnesses sorrounding the new big buiness, they go up and their profit increases because of the employees sourrunding businesses, profits increases.
For example “Walment benefits from Amazon employees because they can go their for food or supplies.
Who made the the least cost theory and what was it about.
The least cost theory was made by Alfred Weber, and it was made to explain the key decisions made by businesses about where to locate factories. The theory was people wanted to reduce labor cost. For example, factory owners will locate the factories where did could minimize their total cause my belly seen three factors, minimizing, transportation minimizing, labor, costs, and minimizing agglomeration economies.
What are agglomeration economies?
The spacial grouping of several businesses to share costs, such as an access road to a public highway or development of a workforce with special skills.
What is Break of bulk?
The procedure of transferring cargo from one mode of transportation to another. This is achieved through Containerization, the system in which goods are loading into a standardized shipping unit.
What is containerization?
The system in which goods are loaded into a standardize shipping unit (same size). The containers are intermodal, meaning they can be carried on a truck, train ship, or plane.
What does intermodal mean?
Intermodal means they can be carried on trains, boats, ships, and semi‘s.
What does footloose mean
Footloose means they can pack up and leave for a new location quickly and easily. (Can move anywhere in the world.)
Fun Fact.
Over the past two decades hundred of call centers that serve U.S. customers have been built in rural areas of the United States and Canada, as well as in low-wage, countries such as is India and the Philippines. However, because locational demands are minimal, these businesses are footloose, meaning they can pack up and leave for a new location quickly and easily.
