Chapter 12 Flashcards
agglomeration economics
cost savings resulting from location near other firms
basic industry
an industry producing goods or services for sale to other regions
break of bulk
the stage of transportation when a bulk shipment is broken into smaller lots and or different modes of transportation
capital goods
goods used to produce other goods
cost minimization
an industrial location strategy that seeks to minimize what the firm pays to produce and distribute its products or services
division of labor
the specialization of workers in particular tasks and different stages of production process
economic base model
a demand driven model in which exports to other regions drive regional development
economies of scale
lower production costs as a result of larger volume of production
externalities
effects that extend beyond any single company. External economies of scale, for instance are cost savings due to a larger volume of production in the region as a whole rather than a large volume within any one company
industrial economy
the dominant mode of production and consumption of the late 19th and early 20th centuries, emphasizing large domestic corporations engaged in food processing, heavy equipment manufacturing and energy products
labor productivity
amount produced per worker per hour
localization economies
savings resulting from local specialization in a specific industry
maquiladora
export assembly plant in Mexico that relies on cheap labor to assemble imported components that are re-exported as finished goods
market oriented
the tendency for an industry to locate near population centers in order to save on transport costs, which usually occurred when the final product is more expensive to transport than the raw material
Nonbasic industry
an industry producing goods or services for sale within the local region
post industrial economy
the emerging mode of production and consumption of the late 20th and early 21st centuries featuring huge transnational corporations and localized agglomerations that produce and or utilize information technology and telecommunications with greater employment in tertiary and quaternary services
primary activity
an economic activity that direct extracts or harvest resources from the earth
producer services
services provided by businesses to other businesses. also known as business services
quaternary activity
highly skilled information based services
raw material oriented
the tendency for an industry to locate near the source of raw materials in order save on transport costs, which usually occurs the raw materials lose weight in the production process
regional multiplyer
a numerical relationship showing the number of total jobs created for each new basic job in a region
secondary activity
an economic activity that transforms raw materials into useable products adding value in the process