Agglomeration Ap Human Geography

AP Human Geography Unit 7 Vocabulary

AgglomerationGrouping together of many firms from the same industry in a single area for collective or cooperative use of infrastructure and sharing of labor resources
Agglomeration EconomiesAKA – External Economies Positive effects of agglomeration for clustered industries and for the consumers of their products, often in the form of lower costs to industries and the consumers
Aluminum Industry (factors of production, location)Massive charges of electricity are required to extract aluminum from its processed raw material, aluminum oxide. Electrical power amounts for between 30% and 40% of the cost of producing the aluminum and is the major variable cost influencing plant location in the industry. The Kitimat plant on the west coast of Canada or the Bratsk plant near Lake Baikal in eastern Siberia are examples of industry placed far from raw material sources or market but close to vast supplies of cheap power— in these instances, hydroelectricity
Assembly Line production/ FordismSystem of standardized mass production attributed to Henry Ford
Bid RentGeographical economic theory that refers to how the price and demand on real estate changes as the distance towards the Central Business District (CBD) increases.
Break-of-bulk PointA location where large shipments of goods are broken up into smaller containers for delivery to local markets
Carrier EfficiencyThe ratio of output to input for a given carrier
Comparative Advantagesthe ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than other producers
Core-Periphery ModelA model of the spatial structure of development in which underdeveloped countries are defined by their dependence on a developed core region
DeglomerationThe dispersal of an industry that formerly existed in an established agglomeration
DeindustrializationLose of industrial activity in an region
Economic SectorsThe primary, secondary, tertiary, quaternary, and quinary sectors
Economies of SaleLower production costs as a result of larger volume of production
EntrepotA trading post where merchandise can be imported and exported without paying import duties.
Export-Processing ZoneAreas where governments create favorable investment and trading conditions to attract export-oriented industries
Fixed CostCosts that do not vary with the quantity of output produced
Footloose Firms/IndustryManufacturing activities in which cost of transporting both raw materials and finished product is not important for determining the location of the firm
Four TigersFour Asian Tigers refers to the economies of Taiwan, Singapore, Hong Kong, and South Korea, aka, Asia’s Four Little Dragons.
Growth PolesEconomic development, or growth, is not uniform over an entire region, but instead takes place around a specific pole
Industrial Location TheoryBy Alfred Weber, an industry is located where the transportation costs of raw materials and final product is a minimum
Industrial Regions (place, fuel source, characteristics)1. North America
2. Europe
3. East Asia
Industrial RevolutionThe rapid economic and social changes in manufacturing that resulted after the introduction of the factory system to the textile industry in England at the end of the 18th century
InfrastructureFundamental facilities and systems serving a country, city, or area, as transportation and communication systems, power plants, and schools
International Division of LaborSelective transfer of skilled jobs in MDCs to LDCs that still allows skilled jobs to exist in MDCs
Labor-Intensive IndustryType of industry in which labor cost is a high percentage of expense
Least-Cost Location/TheoryA 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
Major Manufacturing RegionsA region which manufacturing activities have clustered together
US: North (Chicago, NYC, etc)
Manufacturing/Warehouse Location (industrial parks, agglomeration, shared services, zoning, transportation, taxes, environmental considerations)A feature of economic development in peripheral countries whereby the host country establishes areas with favorable tax, regulatory, and trade arrangements in order to attract foreign manufacturing operations
MaquiladoraThose US firms that have factories just outside the US/Mexican border in areas that have been specially designated by the Mexican government
Market OrientationThe tendency of an economic activity to locate close to its market; a reflection of large and variable distribution costs
NAFTANorth American Free Trade Agreement; allows open trade with US, Mexico, and Canada
OutsouringSending industrial processes out for external production
Plant Location (supplies, “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
PostindustrialA stage of economic development in which service activities become relatively more important than goods production; professional and technical employment supersedes employment in agriculture and manufacturing; and level of living is defined by the quality of services and amenities rather than by the quantity of goods available
Resource OrientationTendency for an industry or other type of economic activity to locate close to its resources
Special Economic Zones (China)(SEZ) – Specific area within a country in which tax incentives and less stringent environmental regulations are implemented to attract foreign business and investment
Specialized Economic ZonesSpecific area within a country in which tax incentives and less stringent environmental regulations are implemented to attract foreign business and investment.
Threshold/RangeThe minimum number of people needed to support the service/The maximum distance people are willing to travel to use a service
Time-Space CompressionAn influence on the rate of expansion diffusion of an idea, observing that the spread or acceptance of an idea is usually delayed as distance from the source of the innovation increases
Trade (complementarity)Exists when two regions, through an exchange of raw materials and/or finished products, can specifically satisfy each other’s demands
Transnational CorporationA company that conducts research, operates factories, and sells products in many countries, not just where its headquarters or shareholders are located
UbiquitousPresent, appearing, or found everywhere
Variable CostsCosts that change directly with the amount of production
Alfred WeberCreator of the model that states that the optimum location of a manufacturing firm is explained in terms of cost minimization
Weight-Gaining (Bulk-Gaining Industry)An industry in which the final product weighs more or comprises a greater volume than the inputs
Weight-Losing (Bulk-Reducing Industry)An industry in which the final product weighs less or comprises a lower volume than the input