Chapter 12: Economic Clusters

Question 1

Weber’s Industrial Location Theory

Answer 1

transport costs determine location for manufacturing

minimizes distance between market/producer/raw materials

Question 2

Unit of analysis for location theory

Answer 2

ton-miles

Question 3

Agglomeration economy

Answer 3

skilled labor, sharing of technologies, sharing of manufacturing/raw materials, infrastructure present

Question 4

Tacit knowledge

Answer 4

knowledge that can only really be learned through person to person contact

Question 5

Basic economic theory

Answer 5

export is key to economy

Question 6

Basic industry

Answer 6

industry that produces goods for people outside of the region

Question 7

Non-basic industry

Answer 7

industry that produces goods for people locally

Question 8

Industry multiplier

Answer 8

change in total employment / change in basic employment

Question 9

Location quotient

Answer 9

measure concentration of industry in a place

Question 10

Location quotient = < >

Answer 10

= satisfies local needs
> export and local
< import not enough for local