chapter 12 Flashcards
Industrial Revolution
The term applied to the social and economic changes in agriculture, commerce and manufacturing that resulted from technological innovations and specialization in late-eighteenth-century Europe.
globalization
The expansion of economic, political, and cultural processes to the point that they become global in scale and impact. The processes of globalization transcend state boundaries and have outcomes that vary across places and scales
Fordist
A highly organized and specialized system for organizing industrial production and labor. Named after automobile producer Henry Ford, Fordist production features assembly-line production of standardized components for mass consumption.
vertical integration
Ownership by the same firm of a number of companies that exist along a variety of points on a commodity chain.
friction of distance
The increase in time and cost that usually comes with increasing distance.
least cost theory
Model developed by Alfred Weber according to which the location of manufacturing establishments is determined by the minimization of three critical expenses: labor, transportation, and agglomeration.
agglomeration
A process involving the clustering or concentrating of people or activities. The term ofter refers to the manufacturing plants and businesses that benefit from close proximity because they share skilled labor pools and technological and financial amenities.
flexible production system
A system of industrial production characterized by a set of processes in which the components of goods are made in different places around the globe and then brought together as needed to meet consumer demand.
commodification
The process through which something is given monetary value. Commodification occurs when a good or idea that previously was not regarded as an object to be bought and sold is turned into something that has a particular price and that can be traded in a market economy.
product life cycle
The introduction, growth, maturation and decline of a product.
global division of labor
Phenomenon whereby corporations and others can draw from labor markets around the world, made possible by the compression of time and space through innovation in communication and transportation systems.
just-in-time delivery
Method of inventory management made possible by efficient transportation and communication systems, whereby companies keep on hand just what they need for near-term production, planning that what they need for longer-term production will arrive when needed.
spatial fix
The movement of production from one site to another based on the place-based cost advantages of the new site.
outsource
With reference to production, to turn over in part or in total to a third party/i.e overseas.
offshore
With reference to production, to outsource to a third party located outside of the country.
