unit 5: economic Flashcards
cost benefit analysis
what you give to get something
cost
amount of time or money a company needs to produce a product
profit
price x cost
subsidies
effort to lure a company to an area
agglomeration industries
companies choose to locate near competitors to share infrastructure, suppliers, work? talent
raw materials
materials used to create a product
agglomeration
companies produce same type of product and pick locations near each other
outsourcing
hiring another company to preform same job functions
footloose industry
very few location requirements
least cost theory
industries must find a location that offers the greatest cost advantage
raw material orientation
industry located raw material
bulky raw material
too large to move far
perishable raw material
processed before shipping to prevent spoilage
market orientation
industry located near market
market perishable
too big to transport