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AP Human Ch. 12

Question	Answer
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 of economic production that is located inland and is connected to the world by a port.
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	Benefit a service or product receives by being the first to market.
Secondary Hearths	Area to which an innovation diffuses and from which the innovation diffuses more broadly.
Globalization	Processes heightening interactions, increasing interdependence, and deepening relations 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	The merging of businesses that serve different steps in one commodity chain.
Location Theory	Understanding the distribution of 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 cluster in the same location. For example, car manufacturers cluster in a city or region to tap into a skilled labor force and access infrastructure, services, and technology.
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
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.
Outscoring	Hiring employees outside the home country of a company in order 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 companies 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 Industrialized Countries	States 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. For example, in a port, containers are unloaded from ships and put on trains, trucks, or riverboats for inland distribution.
Deindustrialization	Decline in industry in a region or economy. Happens when companies move industry to other regions or mechanize production. Democracy
Rust Belt	A region in the northeastern United States that once had an 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: Pl251741

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