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Chapter 12

TermDefinition
Cottage Industries production of goods in a home or small workshop typically by hand or with low technology
Economies of Scale savings in cost of production that comes from increasing production of a good.
Industrial Revolution Cluster of inventions and innovations that brought large-scale economic changes in agriculture, commerce, and manufacturing in late eighteenth century europe
Hinterland an area from which goods can be produced, delivered to the port, and then exported.
Situation the position of a city or place relative to its surrounding environment or context
Network a set of interconnected nodes without a center
First Mover Advantage an economic head start given by early industrialization.
Secondary Hearths Area to which an innovation diffuses and from which the innovation diffuses more broadly.
Globalization includes the processes that are increasing interactions, deepening relationships, and heightening interdependence across country borders.
Fordist Manufacturing system in which raw materials are brought into a central location and component parts and the final product are produced at the same location and then shipped globally.
Vertical Integration Th merging of businesses that serve different steps in one commodity chain
Location theory Similar industries tend to cluster in an area. understanding the distribution fo cities, industries, services, or consumers with the goal of explaining why places are chosen as sites of production or consumption
Agglomeration Cost advantages created when similar businesses clusters in the same location
Least Cost Theory determining the location of manufacturing based on minimizing three critical expenses: labor, transportation, and agglomeration. model developed by Alfred weber.
Friction of Distance difficulty in time and cost that usually comes with increasing distance.
Intermodal Where two or more modes of transportation meet (air, road,rail,barge,and ship)
Capitalism economic system where people, corporations, and states produce goods and services and trade them on the world market with the goal of making a profit.
Commodification Transformation of goods and services into products that can be bought sold or traded
Global Division Of Labor The ability of corporations to employ labor from around the world, made possible by the compression of time and space through innovations in communication and transportation systems.
time-space compression Increasing connectedness between world cities from improved communication and transportation networks.
just in time delivery Production system in which parts are delivered as needed to the assembly line so that parts are not warehoused, stored, or overproduced.
spatial fix The movement of production from one site to another based on the place-based cost advantages of the new site.
node Connection point in a network, where goods and ideas flow in, out, and through the network.
commodity chain steps in the production of a good from its design and raw materials to its production marketing and distribution.
outsourcing Hiring employees outside the home country of a company in oder to reduce the cost of labor inputs for the good or service.
connectivity position of a place or area relative to others in a network.
global sourcing Tapping into countries that specialize in production around the world to manufacture goods.
global production networks Pattern of flows from raw material to global product to disposal or reuse of products that shows all the places connected through production.
newly industrializing countries Staes with growing industrial and service economies and an increasing presence in global trade.
break of bulk point A place where goods are transferred from one form of transport to another.
deindustrialization decline in industry in a region or economy. happens when companies move industry to other regions or mechanize production.
rust belt A region in the northeastern united Staes that ice had and extensive manufacturing industry but has been deindustrialized during the post-Fordist era.
high technology corridor Areas along or near major transportation corridors that are devoted to the research development and sale of high technology products.
Created by: SchoolEnjoyer96
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