Key Concepts in Industrial Geography and Economic Development

Agglomeration

the clustering of businesses, industries, or services in the same area so they can benefit from being close to one another

Break-of-bulk point

A location where transfer is possible from one mode of transportation to another.

Bulk-gaining industry

An industry in which the final product weighs more or comprises a greater volume than the inputs.

Bulk-reducing industry

An industry in which the final product weighs less or comprises a lower volume than the inputs.

Capital

the financial resources invested into a city or urban area to develop infrastructure, housing, businesses, and services

Cottage industry

Manufacturing based in homes rather than in factories, most common prior to the Industrial Revolution.

Deglomeration

the process by which businesses and industries spread out or leave a clustered area because the disadvantages of being close together outweigh the benefits

Demand

The quantity of something that people wish to consume and are able to buy.

Development

A process of improvement in the conditions of people through diffusion of knowledge and technology.

Ecotourism

a form of sustainable tourism that focuses on visiting natural environments without harming them, while also supporting local communities

Fordist

a system of mass production in which goods are made on an assembly line, with each worker performing one specialized task repeatedly

Gender empowerment measure

an index that examines the ability of women to participate in economic and political decision-making within a country

Gender related development index

An indicator constructed by the U.N. to measure the gender gap in the level of achievement in terms of income, education, and life expectancy.

Gross Domestic Product

The value of the total output of goods and services produced in a country in a year, not accounting for money that leaves and enters the country.

Gross National Income

The value of the output of goods and services produced in a country in a year, including money that leaves and enters the country.

Gross National Product

the total value of all goods and services produced by a country's citizens in one year, no matter where they are in the world.

Growth pole

highly innovative or economically strong area that attracts investment and stimulates economic development in the surrounding region

Human Development Index

An indicator constructed by the U.N. to measure the level of development for a country through a combination of income, education, and life expectancy.

Industrial Revolution

A series of improvements in industrial technology that transformed the process of manufacturing goods.

Industrialization

process by which a country or region transforms from primarily agricultural to primarily manufacturing and industry-based

Just in Time Delivery

production strategy where goods and materials arrive at a factory or business exactly when they are needed

Labor

human effort—physical or mental—used in the production of goods and services.

Labor-intensive industry

An industry for which labor costs comprise a high percentage of total expenses.

Least Cost Theory

where industries choose to locate based on minimizing costs

Less developed country

a nation with low levels of economic development, industrialization, and standard of living

Literacy rate

The percentage of a country's people who can read and write.

Maquiladora

A factory built by a U.S. company in Mexico near the U.S. border, to take advantage of the much lower labor costs in Mexico.

Microentrepreneurship

small-scale business activities run by individuals or families, often with minimal capital or resources

More developed country

high levels of economic development, industrialization, and standard of living

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.

Outsourcing

A decision by a corporation to turn over much of the responsibility for production to independent suppliers.

Post-Fordist

Adoption by companies of flexible work rules, such as the allocation of workers to teams that perform a variety of tasks.

Primary sector

The portion of the economy concerned with the direct extraction of materials from Earth, generally through agriculture.

Productivity

The value of a particular product compared to the amount of labor needed to make it.

Quaternary sector

part of the economy that involves knowledge-based activities and services focused on information, research, and management rather than physical goods.

Quinary sector

highest level of the economy, involving decision-making, top-level management, and leadership roles in government, business, and research

Right to work laws

state laws in the U.S. that prohibit requiring workers to join a labor union or pay union dues as a condition of employment.

Secondary sector

The portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials.

Site factors

Location factors related to the costs of factors of production inside a plant, such as land, labor, and capital.

Situation factors

Location factors related to the transportation of materials into and from a factory.

Supply

The quantity of something that producers have available for sale.

Tariffs

taxes imposed by a government on imported goods

Tertiary sector

The portion of the economy concerned with transportation, communications, and utilities, sometimes extended to the provision of all goods and services to people in exchange for payment.

Textile

fabric or cloth produced by weaving, knitting, or felting fibers

Trade Bloc

group of countries that join together to promote trade and economic integration by reducing or eliminating tariffs, import quotas, and other trade barriers among themselves

Transnational Corporation

A company that conducts research, operates factories, and sells products in many countries, not just where its headquarters or shareholders are located.

Ubiquitous Industry

industry that is found almost everywhere because its raw materials or products are widely available

Value added

the increase in the value of a product as it moves through the production process