Chapter 11

Question 1

What sector of the economy does industry take place in?

Answer 1

Secondary sector

Question 2

What must a country do in order to industrialize effectively?

Answer 2

A country must identify its assets and obstacles and figure out what can be produced for the greatest profit at the lowest possible cost

Question 3

Define industry

Answer 3

The production of a product or service within an economy

Question 4

Define site and situation

Answer 4

Site is where something is located, and situation is where something is located relative to other things

Question 5

Why has industry diffused from MDCs to LDCs?

Answer 5

Cheap land, cheap labor, and countries shift from secondary to tertiary sector jobs as their economies develop

Question 6

What fraction of its manufacturing jobs did the US lose during the first decade of the 21st century

Answer 6

1/3

Question 7

Define outsourcing

Answer 7

When a company contracts with foreign companies to produce a product (the company doesn’t move overseas, they just hire another company to produce the product)

Question 8

What is NAFTA?

Answer 8

The North American Free Trade Agreement of 1994 – eliminated trade barriers, but also created conditions for the movement of industry and people (including illegal immigration and drugs)

Question 9

What are maquiladoras and what caused them?

Answer 9

NAFTA has been blamed for the rise in foreign owned factories in Mexico called maquiladoras

Question 10

Why has the population density in Mexico shifted from the central part of the country near Mexico City to the border towns of the north?

Answer 10

The Mexican government first required to maquiladoras to be along the border because of overcrowding in Mexico City. Plus, there are plenty of jobs on the US border and quick access to trade with the US. There’s also cheaper land and living costs in the north

Question 11

What’s an unintended consequence of the Mexican population moving north?

Answer 11

An increase in illegal immigration to the US

Question 12

What are the main factors when determining industrial location?

Answer 12

Land and transportation (costs)

Question 13

Where is copper mostly mined in the US?

Answer 13

In Arizona

Question 14

Why are copper factories located as close to the mines as possible?

Answer 14

Because copper is a conductor and isn’t cheap. They can’t move mines but they can move factories.

Question 15

Is copper a bulk gaining or bulk reducing industry?

Answer 15

Bulk reducing

Question 16

The addition of what usually makes something bulk gaining?

Answer 16

The added weight of something such as water

Question 17

What are some examples of a bulk reducing industry?

Answer 17

Copper, iron, steel, baseball bats, paper, and ethanol

Question 18

What are some examples of a bulk gaining industry?

Answer 18

Different foods, water bottles/ bottled drinks and foods, and cars

Question 19

If your industry is bulk reducing then where do you want the factory to be located?

Answer 19

Close to the raw materials/ input

Question 20

What are the 4 factors the location of industry is based on?

Answer 20

Transportation costs (bulk gaining or reducing), availability of labor, agglomeration (the clustering of other related industries which provides support), and the location relative the market

Question 21

What parts of the “land” site factor are always changing?

Answer 21

The price of land, the proximity to markets, and transportation

Question 22

What parts of the “labor” site factor are always changing?

Answer 22

The availability of low cost labor

Question 23

What parts of the “capital” site factor are always changing?

Answer 23

Money, technology, equipment, factories, etc

Question 24

Why have factories moved from urban areas to rural sites?

Answer 24

Because land is cheaper and more abundant and changes in access to transportation networks

Question 25

What has been a competitor with Mexico's maquiladoras?

Answer 25

China's "special economic zones"

Question 26

What are SEZs?

Answer 26

Special areas that the government exempts from taxes and government regulations, quotas, labor laws, etc

Question 27

What are the 4 primary methods of shipping and what do they depend on?

Answer 27

Trucks, trains, ships, and air. Which one a manufacturer chooses depends on what and where it's going

Question 28

What are break of bulk points?

Answer 28

Locations where large amounts of cargo can be easily broken up and shipped in different modes (from ships to trains and trucks, etc)

Question 29

Where is reliance on low cost labor most commonly found?

Answer 29

In developing countries in South and East Asia

Question 30

What's an example of reliance on low cost labor?

Answer 30

Labor intensive textiles are now commonly produced in heavily populated countries (Ex: India and Indonesia)

Question 31

What is comparative advantage? Give an example.

Answer 31

When a country can produce 1 thing at a lower cost, even though they have the capability to produce many things. Ex: China could produce cars and toys, but it's cheaper to focus its resources on toys. So they let otheres make cars and then trade with them.

Question 32

What is deindustrialization??

Answer 32

Changes in labor structure and land use lead to de-industrialization

Question 33

What are the 4 reasons that industry is shifting south and west?

Answer 33

Deindustrialization in the north, access to resources (ex: cheaper land in the south), more "right to work" states in the south so no labor unions, and internal migration (more people are moving south and west)

Question 34

Where is industry shifting from and to where?

Answer 34

Industry and people are moving from the Rust Belt to the Sun Belt

Question 35

What is just in time delivery?

Answer 35

When a shipment of component parts and materials to a factory takes place at the moment that they are needed.

Question 36

Where do suppliers locate nowadays due to just in time delivery and why does it work?

Answer 36

Suppliers locate as close to manufacturers as possible. This saves money on shipping, loading, unloading, and especially warehousing

Question 37

What are the potential disruptions during just in time delivery?

Answer 37

Labor shutdowns (strikes) can disrupt the flow of deliveries, traffic and security at international borders, and environmental hazards (hurricanes, snow, ice, earthquakes, etc)

Question 38

What are footloose industries? Give examples

Answer 38

Industries where location doesn't matter- not tied to a certain location due to available resources or specific transportation needs. Ex: Microchip manufacturing, software development, social media sites, etc

Question 39

What is agglomeration and what does it lead to?

Answer 39

The clustering of related industries to increase productivity and cut costs. It leads to "growth poles" (areas where specific industries cluster and then boost the local economy (housing, job opportunities, services, etc)

Question 40

What are growth poles?

Answer 40

Areas where specific industries cluster and then boost the local economy (housing, job opportunities, services, etc)

Question 41

Where is Silicon Valley and why is it located where it is?

Answer 41

It's in Northern California because of the good colleges such as Stanford that attracts smart people to move there and ultimately start their companies or bring their existing one there

Question 42

What is the research triangle in North Carolina?

Answer 42

It's an area with many top universities such as Duke and UNC which attracts highly skilled and educated labor. This creates a high quality of life and attracts related industries

Question 43

What attracts people to Music City (Nashville)?

Answer 43

Vanderbilt and other top universities, the music industry, health care industry, and auto manufacturing.