Unit 5: Agriculture and Rural Land-Use Patterns and Processes Chapter 13: Topic 5.7

Question 1

The reason for the evolving agricultural landscape; farms run as corporations, and the globalization of agriculture. This involves the integration of various steps of production in the food-processing industry such as research and development, processing and production, transportation, marketing, and retail of agricultural goods.

Answer 1

Agribusiness

Question 2

Companies that operate in many countries. These large-scale operations are commercial, highly mechanized, and often use chemicals and biotechnology in raising crops and animals.

Answer 2

Transnational Corporations

Question 3

The ownership of other businesses involved in the steps of producing a particular good. Owning the contributing businesses gives the large farm more control of the variables and results in greater overall profits. Ex: Research and development company that improves seeds, trucking firm that transports farm products, a factory that processes the goods, and a wholesaler that distributes the food to store.

Answer 3

Vertical Integration

Question 4

Increase in efficiency to lower the per-unit production cost, resulting in greater profits. Ex: A grain farmer increasing the size of his or her farm by purchasing an additional quarter section. By using the existing machinery on the farm more efficiently, the farmer can successfully plant and harvest the additional acreage without the purchase of new equipment. This will increase the owner’s revenues while the expenses will not increase proportionally. As a result, the cost per unit of grain will decrease and profits will increase.

Answer 4

Economies of Scale

Question 5

Process used by corporations to gather resources, transform them into goods, and then transport them to consumers.

Answer 5

Commodity Chain

Question 6

Transportation networks that keep food cool throughout a trip. Ex: Fruits and vegetables from the tropics can be delivered fresh to the temperature climates of North America and Europe at relatively low prices for consumers.

Answer 6

Cool Chains