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19 Cards in this Set
- Front
- Back
Where is Industry Distributed?
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originated in northern England and southern Scotland and diffused to Europe and North America in nineteenth century and other regions in twentieth century
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The three largest Industrial regions in the world
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North American, Europe, and East Asia
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Location Theory
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location pattern of economic activity
formulated by Alfred Weber |
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Just in Time delivery
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shipments of parts and materials to arrive at a factory moments before they are needed.
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Situation Factors
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involve transporting materials to and from a factory
proximity to materials and markets |
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Site Factors
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result from the unique characteristics of a location
labor,land, and capital |
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Transportation Modes
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Ship- attractive for transport very long distance, per kilometer cost very low.
Rail- used to ship to destinations that take longer than one day to reach, such as east coast to west coast.take longer to load. Truck- short distance delivery Air- most expensive, small bulk, high value |
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Agglomeration Economies
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the benefits that firms obtain by locating near each other
also apply to service and high tech companies |
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Economies of Scale
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The larger the scale, the smaller the per unit cost
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Outsourcing
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turning over much of the responsibility for production to independent suppliers
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Maquiladoras
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plants in Mexico near U.S border, export finished product to the U.S
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New International Division of Labor
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selective transfer of some jobs to developing countries
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Primary reasons why U.S has lost manufacturing jobs
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outsourcing
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Why some manufacturing jobs are coming back to U.S
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proximity to skilled labor and just in time delivery
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Traditional Trade vs. Intra- Industry Trade
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in traditional trade countries export products that have comparative advantage, import products of scarcity. In intra-industry trade, import and export more or less the same goods
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Paul Krugman explain Intra Industry Trade
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the assumption of economics of scale in production and a preference for diversity in consumption.
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Why do firms cluster geographically
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Saving in production costs that occur when firms locate near one another
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Comparative advantage
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areas tend to specialize in the production of those items they have the greatest relative advantage over the other areas.
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International division of labor
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the specialization, by countries, in particular products and services for export.
Transnational corporations (TNC) |