Section 5 - 5.4 location Flashcards
Assisted areas (enterprise zones)
Are regions identified by the government to be suffering from relatively high unemployment and low incomes, so are in need of regeneration three financial
Bulk Increasing businesses
Are involved with products that increase weight during the production process, so need to be located near their customers in order to reduce costs
Bulk decreasing businesses
Are 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
Clustering
Means that a business locates near other organizations that operate in similar or complementary markets
Footloose organization
Is 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
Industrial inertia
Describes the reluctance to relocate due to the inconvenience of moving. Managers may feel that the potential inconvenience and cost of relocation outweighed the benefits
Infrastructure
Infrastructure Is the term used to describe the transportation, communication and support networks in a certain area
Insourcing
Is the use of organizations and people resources to accomplish a certain function or task otherwise have been outsourced
Location
Refers to the geographical position of a business the location is a crucial one, and depending on both quantitative and qualitative factors
Offshoring
Involves relocating business functions and processes overseas the offshore functions can remain within the business or outsource to an overseas organization
Outsourcing
Is the practice of transferring internal business activities to an external organization to reduce costs and increase productivity.