Chapter 18 Flashcards
agglomeration
the tendency of enterprises in the same industry to cluster in the same area
break-of-bulk points
location where it is more economical to break raw materials into smaller units before shipping them further
bulk-gaining industries
industry in which the finished goods cost more to transport than the raw materials
bulk-reducing industries
industry in which the raw materials cost more to transport than the finished goods
cottage industries
preindustrial form of manufacture in which members of families spread out through rural areas worked in their homes to make goods
dual economies
economies with two distinct distributions of economic activity across the economic sectors
economic sectors
collections of industries engaged in similar economic activities based on the creation of raw materials, the production of goods, the provision of services, or other activities
Gross Domestic Product (GDP)
the total value of goods and services produced by a country’s citizens and companies within the country in a year
industrial parks
a collection of manufacturing facilities in a particular area that is typically found in suburbs and is located close to highways and facilitate movement of raw materials and finished products
industrial revolution
the radical change in manufacturing methods that began in Great Britain in the mid-18th century and was marked by the shift from small-scale, hand crafted, muscle-powered production to power-driven mass production
industrialization
the process in which the interaction of social and economic factors causes the development of industries on a wide scale
industry
any economic activity using machinery on a large scale to process raw materials into products
least-cost theory
industrial location theory proposed by Alfred Weber suggesting that businesses locate their facilities in a particular place because that location minimizes the costs of production
postindustrial economy
an economic pattern marked by predominant tertiary sector employment - with a good share of quaternary and quinary jobs
primary sector
an economic sector associated with removing or harvesting products from the earth; includes agriculture, fishing, forestry, mining, and extracting liquids or gas
quaternary sector
economic sector that is a subset of tertiary sector activities that require workers to process and handle information and environmental technology
quinary sector
economic sector that is a subset of the quaternary sector; involves the very top leaders in government, science, universities, nonprofits, health care, culture, and media
raw materials
any metals, wood or other plant products, animal products, or other substances that are used to make intermediate or finished goods
secondary sector
economic sector associated with the production of goods from raw materials; includes manufacturing, processing, and construction
tertiary sector
economic sector that includes a host of activities that involve the transport, storage, marketing, and selling of goods or services; also called the service sector
