Grouping together of many firms from the same industry in a single area for collective or cooperative use of infrastructure and sharing of labor resources.
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Assembly Line
In a factory, an arrangement where a product is moved from worker to worker, with each person performing a single task in the making of the product.
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Basic Industry
Industries that sell their products or services primarily to consumers outside the settlement
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Break-of-Bulk Point
A location where large shipments of goods are broken up into smaller containers for delivery to local markets.
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Brownfield
A property which has the presence or potential to be a hazardous waste, pollutant or contaminant.
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Bulk-Gaining Industry
An industry in which the final product weighs more or has a greater volume than the inputs.
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Bulk-Reducing Industry
An industry in which the final product weighs less or comprises a lower volume than the inputs.
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Capital
Money owned in a business by a corporation or person
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Complementarity
Relationship between a demand for a product and the surplus of the same product
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Cottage Industry
Manufacturing based in homes rather than in a factory, commonly found before the Industrial Revolution.
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Deindustrialization
Process by which companies move industrial jobs to other regions with cheaper labor, leaving the newly deindustrialized region to switch to a service economy and to work through a period of high unemployment
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Deglomeration
The process of deconcentration; the location of industrial or other activities away from established agglomerations in response to growing costs of congestion, competition, and regulation
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Distance Decay
The effects of distance on interaction, generally the greater the distance the less interaction
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Economies of Scale
The property whereby long-run average total cost falls as the quantity of output increases
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Export Processing Zone
Region of a less-developed country that offer tax breaks and loosened labor restrictions to attract export-driven production processes, such as factories producing goods for foreign markets; sometimes called free-trade zone. Certain areas of a nation where standard trade barriers are diminished and mandates are alleviated to gain business and investments.
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Footloose Industry
Industry not bound by locational constraints and able to choose to locate wherever it wants. Located in a wide variety of places without a significant change in its cost of transportation, land, labor, and capital. Location not influenced by access to materials.
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Fordism
Form of mass production in which each worker is assigned one specific task to perform repeatedly.
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Post-Fordism
Adoption by companies of flexible work rules, such as the allocation of workers to teams that perform a variety of tasks.
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Friction of Distance
A measure of the restraining effect of distance on spatial interaction. Generally, the greater the distance, the greater the cost and time of achieving the exchange.
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Global Division of Labor
Corporations can draw from labor around the globe for different components of production
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Industrial Inertia
The refusal of a company to leave its original location even when the reasons that made the location suitable or advantageous have disappeared.
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Industrial Revolution
A series of improvements in industrial technology that transformed the process of manufacturing goods.
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Infrastructure
Fundamental facilities and systems serving a country, city, or area, as transportation and communication systems, power plants, and schools
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Intermodal Connections
Places where two or more modes of transportation meet (including air, road, rail, barge, and ship)
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Just-in-Time Delivery
Method of inventory management made possible by efficient transportation and communication systems, whereby companies keep on hand just what they need for near-term production, planning that what they need for longer-term production will arrive when needed.
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Labor-Intensive
Type of industry in which labor cost is a high percentage of expense.
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Least-Cost Theory
A concept developed by Alfred Weber to describe the optimal location of a manufacturing establishment in relation to the costs of transport and labor, and the relative advantages of agglomeration or deglomeration
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Location Theory
Firms choose locations that maximize their profits and individuals choose locations that maximize their utility.
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Locational Interdependence
Locational dependency occurs when a firm's ability to operate depends on its closeness to things like other companies, tourist sites, or transit routes, and/or when customers desire or require the company to be in a certain place.
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Manufacturing Region
A region in which manufacturing activities have clustered together.
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Maquiladora
Factories built by US companies in Mexico near the US border to take advantage of much lower labor costs in Mexico.
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Mass Production
Production of goods in large numbers through the use of machinery and assembly lines
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New International Division of Labor
Transfer of some types of jobs, especially those requiring low-paid less skilled workers, from more developed to less developed countries.
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Non-Basic Industry
Industries that sell their products primarily to consumers in the local community.
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Outsourcing
A decision by a corporation to turn over much of the responsibility for production to independent suppliers or unaffiliated vendors.
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Offshore
With reference to production, to outsource to a third party located outside of the country.
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Sunbelt
States in the south and southwest that have a warm climate and tend to be politically conservative
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Alfred Weber
German geographer who was a major theorists of industrial location. He devised a model of how to understand industrial locations in regard to several factors, including labor supply, markets, resource location, and transpiration.
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Primary Industry
The part of the economy that produces raw materials; examples include agriculture, fishing, mining, and forestry.
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Primary Industrial Regions
Western and Central Europe; Eastern North America; Russia and Ukraine; and Eastern Asia, each of which consists of one or more core areas of industrial development with subsidiary clusters
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Raw Materials
The basic material from which a product is made.
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Right-to-Work State
A U.S. state that has passed a law preventing a union and company from negotiating a contract that requires workers to join a union as a condition of employment.
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Site Characteristics
Location factors related to the cost of factors of production inside the facility. (Land, Labor, Capital)
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Situation Characteristics
Location factors related to the transportation of materials into and from a factory.
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Secondary Industry
Industries that deal with making products that are likely to be directly consumed by individuals.
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Substitution Principle
Principle that maintains that the correct location of a production facility is where the net profit is the greatest. Therefore in industry, there is a tendency to substitute one factor of production (e.g., labor) for another (e.g., capital for automated equipment) in order to achieve optimum location.
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Technopole
A center of high-tech manufacturing and information-based industry.
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Textile
A fabric made by weaving, used in making clothing
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Varignon Frame
A system of weights and pulleys used to help determine the optimum location of a production facility.
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Variable Costs
Costs that vary with the quantity of output produced
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Weber, Alfred
German economist who developed in 1909 a theory for the location of industries that focused on transportation, labor, and agglomeration as factors of production affecting the optimal (least cost) industrial location.