Unit 7- Economy

Cottage Industry

Manufacturing done in homes, not in factories

Webber’s least cost theory

transportation cost, labor cost, and agglomeration benefits decide where companies would locate manufacturing plants.

bulk reducing industry

raw material is heavier to transport than the refined/finished product

agglomeration economies

many businesses in proximity share the cost of utilites

labor dependent industries

industries that need people with specific skills

locational interdependence

where a factory is located depends on where other factors are

just in time delivery

inputted resources needed at an assembly manufacturing plant arrive right when they’re needed

front office

very expensive place where business higher ups can be nearby and interact with other bussinesses

back office

low profile place where the rest of workers are at

offshoring

companies move their business places overseas

outsourcing

hiring other companies to do your work/labor

Human development index (HDI)

measures level of development for a country through a standard of living, life expectancy, education

gross national income (GNI)

money from the output of goods/services in a country includes money that leaves and enters a country