Unit 5: Part 2 Flashcards
Agribusiness
Farms run as corporations
Transnational corporations
Agribusinesses that operate in many countries
Vertical integration
Ownership of other businesses involved in the steps of producing a particular good
Economies of scale
An increase in efficiency to lower the per unit production cost resulting in greater profits
Commodity chain
A process used by corporations to gather resources, transform them into goods, and transport them to consumers
Carrying capacity
The available resources that can be harvested without harming the land
Cool chains
Transportation networks to keep food cool on a trip
Location theory
Deals with why people choose certain locations for various types of economic activity
von Thünen Model
An economic model that suggested a pattern for the types of products that farmers would produce at different positions relative to the market
Isotropic plain
Flat and featureless and similar throughout
Horticulture
A type of agriculture that includes market gardening/truck farming and dairy farming
Bid-price curve (bid-rent curve)
Can be used to determine the starting point for each land use relative to the market as well as where each land use would end
Free-market economy
Where supply and demand, not government policy, determine the outcome of competition for land
Comparative advantage
Naturally occuring beneficial conditions
Supply chain
All the steps required to get a product or service to customers
Luxury crops
Are note essential to human survival but have a high profit margin
Neocolonialism
The use of economic, political, and social pressures to control former colonies
Fair trade movement
An effort to promote higher incomes for producers and for more sustainable farming practices
Subsidies
Public support to farmers to ensure that customers have a dependable, low cost food supply