AP Hug - Chapter 12 Vocab

Product life cycle

The introduction, growth, maturation and decline of a product

Newly industrializing countries

States that underwent industrialization after World War II and whose economies have grown at a rapid pace

Commodification

The process through which something is given monetary value

Friction of distance

the increase in time and cost that usually comes with increasing distance

Least cost theory

Model developed by Alfred Weber According to which the location of manufacturing establishments is determined by the minimization of three critical expenses labor, transportation, and agglomeration

Rustbelt

A region in the northeastern United States that was once characterized by industry; now so-called because of the heavy deindustrialization of the area

Flexible production system

A system of industrial production characterized by a set of processes in which the components of goods are made in different places around the globe and then brought together as needed to meet consumer demand

Growth pole

a business that spurs economic development in the surrounding area

Just-in-time delivery

Method of inventory management made possible by efficient transportation and communication systems where 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

Spatial fix

The movement of production from one site to another based on the place-based cost advantages of the new site

Fordist

The mass production assembly line that allowed the inexpensive production of consumer goods at a single site on a previously unknown scale; became the dominant mode of mass production from 1945 to 1970

Vertical integration

Ownership by the same firm of a number of companies that exist along a variety of points on a commodity chain

Globalization

a set of outcomes and processes that are increasing interactions, deepening relationships, and heightening interdependence without regard to country borders

Sunbelt

The south and southwest regions of the United States

Technopole

centers or nodes of high technology research and activity around which a high technology Corridor is sometimes established

Industrial Revolution

The term applied to the Social and economic changes in agriculture Commerce and Manufacturing that resulted from technological innovations and specialization in late 18th century Europe

Offshore

with reference to production to outsource to a third party located outside of the country

Break-of-bulk point

A location along a transport route where Goods must be transferred from one carrier to another

Deindustrialization

Processed by which companies move industrial jobs to other regions with cheaper labor leaving the newly de industrialized region to switch to a service economy and to work through a period of high unemployment

Agglomeration

A process involving the clustering or concentrating of people or activities; often refers to manufacturing plants and businesses that benefit from close proximity because they share skilled labor pools and technological and financial amenities

Outsourced

a reference to production to turn over in part or in total to a third party

Global division of labor

Phenomenon where by corporations and others can draw from labor markets around the world made possible by the compression of time and space through innovation and communication and transportation systems