INDUSTRY AND SERVICES Flashcards
ECONOMIC OVERHEAD CAPITAL
Examples: Ports, Airports, Railroads, Electricity, Water, Sewer, Natural Gas, Telecommunications, Internet Access
SOCIAL OVERHEAD CAPITAL
Examples: Educational System, Housing, Healthcare, Hospitals, Public Parks, Police, Fire Protection
DIRECT PRODUCTIVE ACTIVITY
Examples: Businesses and Industries
AGGLOMERATIVE FORCES (CONCENTRATING)
various companies or industries share equipment, labor, and lower prices on supplies
Note: Advantage of Being Near Infrastructure
DEGLOMERATIVE FORCES (DISPERSING)
when a place becomes so attractive that rents begin to increase and congestion sets in
Example: Companies Leaving Manhattan
RAW-MATERIAL INTENSIVE INDUSTRIES
Iron Industry
LABOR-INTENSIVE INDUSTRY
Garment, Restaurant, Hotels, Agriculture, Mining, Healthcare, Caregiving
CAPITAL-INTENSIVE INDUSTRY
Oil, Auto Manufacturing, Steel Production, Railways, Airlines
GLOBALIZATION
the processes that are increasing interactions, deepening relationships, and heightening interdependence across country borders
FORDIST PRODUCTION
uses mass-production assembly line to in expensively produce consumer goods at a single site
VERTICAL INTEGRATION
when companies by their suppliers and the companies to which they sell their finished products
Examples: Costco Chickens and Netflix Originals
HORIZONTAL INTEGRATION
when business entities within the same industry merge to increase the production of goods and services
Examples: Facebook Buys Instagram, Heinz and Kraft Merge, Airline Buys Railroad
AGGLOMERATION
similar industries tend to cluster around one area
Examples: Silicon Valley and Boston Colleges
LEAST COST THEORY
factory owners desire to maximize savings and minimize transportation costs with friction of distance
INTERMODAL CONNECTIONS
places where two or more modes of transportation meet to ease the flow of goods and reduce the costs of transporting them
CONTAINER SYSTEM
goods are packed in standard size containers that are picked up by cranes and put on ships, then moved to trucks, barges, or railroad cars
Note: 90% of Long-Distance Shipping is in Containers
FLEXIBLE PRODUCTION
firms can pick and choose among a multitude of suppliers and production strategies in distant places, and then quickly shift their choices in response to adjustments in production costs or consumer demand
FOUR STAGES OF PRODUCTION
- Introduction
- Growth
- Maturity
- Decline
SPATIAL FIX
technological advances make it possible for companies to move from production one site to another based on cost advantages
GLOBAL DIVISION OF LABOR
labor is concentrated in the global economic periphery and semi-periphery to take advantage of lower labor costs
JUST-IN-TIME DELIVERY
companies keep just what they need for short-term production and new parts are shipped quickly when needed
Example: Dell Computers
COMMODITY CHAIN
goods designed by chain but has many suppliers globally
Example: IKEA
RAW MATERIALS
Ubiquitous: found everywhere (air, sand, gravel, limestone)
Sporadic: found in a limited number of locations (petroleum, metals)
Pure: doesn’t lose weight in manufacturing process (cotton)
Gross: loses weight in manufacturing process (sugar cane, coal, iron ore)
GLOBAL PRODUCTION NETWORKS
encompass a wide variety of activities, arrangements, and transactions
OUTSOURCING
a company in a core country moves production abroad to have lower labor costs
REGULATORY ENVIRONMENTAL
at a worldwide scale production is impacted by tariffs, trade quotas, import quotas, and discouraged protectionism
locally regulations, like taxes, can increase cost of production
THE FOUR TIGERS
the first newly industrializing countries with low labor costs, government protection of industry, and government investment in education
South Korea, Taiwan, Hong Kong, and Singapore
JUGGERNAUT
a huge, powerful, and overwhelming force of institutions; the Rust Belt for China
