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21 Terms
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Cottage Industry
Manufacturing based in homes rather than in factories, most common prior to the Industrial Revolution
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Site Factors
Location factors related to the costs of factors of production inside a plant, such as land, labor, and capital
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Situation Factors
Location factors related to the transportation of materials into and from a factory.
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Least Cost Theory
Theory that attempts to explain the location of manufacturing industries; according to Alfred Weber, the goal is to minimize three expenses: labor, transportation, and agglomeration
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Bulk-Reducing Industry
AN industry in which the final product weighs less or comprises a lesser value than the inputs
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Bulk-Gaining Industry
An industry in which the final product weighs more or comprises a greater volume than the inputs
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Break-of-Bulk Point (aka- Intermodal Connection)
A location where transfer is possible from one mode of transportation to another
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Just-in-time delivery
Shipment of parts and materials to arrive at a factory moments before they are needed
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Labor-Intensive Industry
An industry for which labor costs comprise a high percentage of total expenses
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Nonrenewable Energy
A source of energy that has a finite supply capable of being exhausted
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Renewable Energy
A resource that has a theoretically unlimited supply and is not depleted when used by people
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New International Division of Labor (some sources: International Division of Labor)
Transfer of some types of jobs, especially those requiring low-paid, less skilled workers, from developed to less developed countries
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Deindustrialization
Region that has lost industrial jobs to other regions or possibly other countries; these areas often experience social and economic hardship as a result of this process
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Outsourcing
A decision by a corporation to turn over much of the responsibility for production to independent suppliers
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Vertical integration
An approach typical of traditional mass production in which a company controls all phases of a highly complex production process
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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
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Right-to-Work-Law
A U.S. law that prevents a union and a company from negotiating a contract that requires workers to join the union as a condition of employment.
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Fordist Production
A form of mass production in which each worker is assigned one specific task to perform repeatedly.
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Post-Fordist Production
Adoption by companies of flexible work rates, such as the allocation of workers to teams that perform a variety of tasks.
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Remanufacturing
The rebuilding of a product to specifications of the original manufactured product using a combination of reused, repaired, and new parts.
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Recycling
The separation, collection, processing, marketing and reuse of an unwanted material