INDUSTRY AND SERVICES

Question 1

ECONOMIC OVERHEAD CAPITAL

Answer 1

Examples: Ports, Airports, Railroads, Electricity, Water, Sewer, Natural Gas, Telecommunications, Internet Access

Question 2

SOCIAL OVERHEAD CAPITAL

Answer 2

Examples: Educational System, Housing, Healthcare, Hospitals, Public Parks, Police, Fire Protection

Question 3

DIRECT PRODUCTIVE ACTIVITY

Answer 3

Examples: Businesses and Industries

Question 4

AGGLOMERATIVE FORCES (CONCENTRATING)

Answer 4

various companies or industries share equipment, labor, and lower prices on supplies

Note: Advantage of Being Near Infrastructure

Question 5

DEGLOMERATIVE FORCES (DISPERSING)

Answer 5

when a place becomes so attractive that rents begin to increase and congestion sets in

Example: Companies Leaving Manhattan

Question 6

RAW-MATERIAL INTENSIVE INDUSTRIES

Answer 6

Iron Industry

Question 7

LABOR-INTENSIVE INDUSTRY

Answer 7

Garment, Restaurant, Hotels, Agriculture, Mining, Healthcare, Caregiving

Question 8

CAPITAL-INTENSIVE INDUSTRY

Answer 8

Oil, Auto Manufacturing, Steel Production, Railways, Airlines

Question 9

GLOBALIZATION

Answer 9

the processes that are increasing interactions, deepening relationships, and heightening interdependence across country borders

Question 10

FORDIST PRODUCTION

Answer 10

uses mass-production assembly line to in expensively produce consumer goods at a single site

Question 11

VERTICAL INTEGRATION

Answer 11

when companies by their suppliers and the companies to which they sell their finished products

Examples: Costco Chickens and Netflix Originals

Question 12

HORIZONTAL INTEGRATION

Answer 12

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

Question 13

AGGLOMERATION

Answer 13

similar industries tend to cluster around one area

Examples: Silicon Valley and Boston Colleges

Question 14

LEAST COST THEORY

Answer 14

factory owners desire to maximize savings and minimize transportation costs with friction of distance

Question 15

INTERMODAL CONNECTIONS

Answer 15

places where two or more modes of transportation meet to ease the flow of goods and reduce the costs of transporting them

Question 16

CONTAINER SYSTEM

Answer 16

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

Question 17

FLEXIBLE PRODUCTION

Answer 17

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

Question 18

FOUR STAGES OF PRODUCTION

Answer 18

1. Introduction
2. Growth
3. Maturity
4. Decline

Question 19

SPATIAL FIX

Answer 19

technological advances make it possible for companies to move from production one site to another based on cost advantages

Question 20

GLOBAL DIVISION OF LABOR

Answer 20

labor is concentrated in the global economic periphery and semi-periphery to take advantage of lower labor costs

Question 21

JUST-IN-TIME DELIVERY

Answer 21

companies keep just what they need for short-term production and new parts are shipped quickly when needed

Example: Dell Computers

Question 22

COMMODITY CHAIN

Answer 22

goods designed by chain but has many suppliers globally

Example: IKEA