Chapter 5.4 - Location

Question 1

Assisted areas (Enterprise zones)

Answer 1

Regions identified by governments to experience relatively high unemployment and low incomes, so are in need of regeneration through financial assistance

Question 2

Bulk-increasing/weight-gaining industries

Answer 2

Involved with products that increase in weight during the production process, so need to be located near their customers in order to reduce costs

Question 3

Bulk-reducing/weight-losing industries

Answer 3

Those that need to locate near the source of raw materials because they are heavier and hence more costly to transport than the final product

Question 4

Clustering

Answer 4

Means that a business is located near other organizations that operate in similar or complementary markets

Question 5

Footloose organization

Answer 5

A business that does not gain any cost-reducing advantages from locating in a particular location. Hence, the firm can locate in almost any location

Question 6

Government incentives

Answer 6

Financial enticements offered by the state to businesses to locate in a particular area or region, perhaps due to high employment

Question 7

Industrial inertia

Answer 7

Describes the reluctance to relocate due to the inconvenience of moving, even when the competitive advantages for the location no longer existed

Question 8

Infrastructure

Answer 8

The term used to describe the transportation, communication, and support networks in a certain area

Question 9

Insourcing

Answer 9

The use of an organization’s own people and resources to accomplish a certain function or task which would otherwise have been outsourced

Question 10

Loaction

Answer 10

Refers to the geographical position of a business

Question 11

Offshoring

Answer 11

An extension of outsourcing, which involves relocating business functions and processes overseas

Question 12

Outsourcing (subcontracting)

Answer 12

The practice of transferring internal business activities to an external organization in order to reduce costs and increase productivity

Question 13

Reshoring

Answer 13

The reverse of offshoring, the transfer of business operations back to their country of origin

Question 14

Subcontractors

Answer 14

Outsourced firms that undertake non-core activities for an organization. They are used for their expertise and the cost advantages they bring