APHUG Unit 6

agglomeration

agglomeration

The centralization of parts of an industry for the mutual benefit of the industry as a whole

basic industries

Industries that sell their products or services primarily to consumers outside the settlement

break-of-bulk points

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

capitalism

an economic system that lets the competitive market determine the price of goods in a society, people have the freedom to choose their outcomes based on their ability to pay for a product

communism

an economic system in which the government has total control over the prices of goods in a society

cottage industry

Manufacturing based in homes rather than in a factory, commonly found before the Industrial Revolution.

deglomeration

Occurs when the market becomes saturated with a particular industry, creating too much competition and forcing some businesses to shut down

entrepots

area where trade goods are brought to be reloaded onto other forms of transportation

export processing zones

small areas of a country with exceptional investment and trading conditions that are created by its government the stimulate and attract foreign investors and business

fixed costs

costs that do not fluctuate depending on quantity ordered

footloose industry

a company with no allegiance or ties to a county or location that can therefore move its primary location

fordism

Form of mass production in which each worker is assigned one specific task to perform repeatedly.

gross domestic product

determined by summing selling value or market price of all goods and services that are produced in a particular country in a given year

gross national product

determined by summing the value of goods and services produced by a country's factors of production in a given period

human development index

includes the characteristics such as life expectancy, literacy, education, and standard of living that affect all people's lives regardless of culture

just in time delivery

Shipment of parts and materials to arrive at a factory moments before they are needed

maquiladoras

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.

multiplier effect

the expansion of the economic base of a city as a result of increased demand sparking increased production which in turn employs more people who demand more

outsourcing

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

socialism

an economic system in which the government controls the basic elements of an economy, such as food prices, transportation cost, and energy prices

special economic zones

areas designated specifically for foreign companies to locate their headquarters (eg. hong kong in china)

ubiquitous industries

a product is available to consumers at any time and any location (eg mcdonalds)

variable costs

costs that fluctuate based on volume of the order