chapter 12: industry and services
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1. agglomeration a process involving the clustering or
concentrating of people or activities. the
term often refers to manufacturing plants
and businesses that benefit from close
proximity because they share skilled-
labor pools and technological and
financial amenities
2. break-of-bulk a location along a transport route where
point goods must be transferred from one
carrier to another. in a port, the cargoes
of oceangoing ships are unloaded and
put on trains, trucks, or perhaps smaller
riverboats for inland distribution
3. commodification the process through which something is
given monetary value. commodification
occurs when a good or idea that
previously was not regarded as an
object to be bought and sold is turned
into something that has a particular
price and that can be traded in a market
economy
4. commodity chain series of links connecting the many
places of production and distribution
and resulting in a commodity that is then
exchanged on the world market
5. connectivity connectedness of a node in the world
economy to other nodes along networks
6. cottage industry small-scale production of goods,
typically by hand or with low
technology In a home or small
workshop
7. deindustrialization process by which companies move
industrial jobs to other regions with
cheaper labor, leaving the newly
deindustrialized region to switch to a
service economy and to work through a
period of high unemployment
8. distance decay the effects of distance on interaction,
generally the greater the distance the
less interaction
9. economies of increasing production of a good so that
scale the average cost of the good declines
10. first mover the benefit first innovators or first in a
advantage market have over later entries
11. flexible a system of industrial production
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
12. fordist a highly organized and specialized system for
organizing industrial production and labor.
named after automobile producer henry ford,
fordist production features assembly-line
production of standardized components for
mass consumption
13. friction of the increase in time and cost that usually
distance comes with increasing distance
14. global phenomenon whereby corporations and
division of others can draw from labor markets around
labor the world, made possible by the compression
of time and space through innovation in
communication and transportation systems
15. globalization the expansion of economic, political, and
cultural processes to the point that they
become global in scale and impact. the
processes of globalization transcend state
boundaries and have outcomes that vary
across places and scales
16. high- area along or near major transportation
technology arteries that is devoted to the research,
corridor development, and sale of high-technology
products. this area develops because of the
networking and synergistic advantages of
concentrating high-technology enterprises in
close proximity to one another. "silicon valley"
is a prime example of a high-technology
corridor in the united states
17. hinterland an area of economic production that is
located inland and is connected to the world
by a port
18. intermodel place where two or more modes of
connection transportation meet (including air, road, rail,
barge, and ship)
19. just-in-time method of inventory management made
delivery possible by efficient transportation and
communication systems, whereby 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
20. 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
21. location theory a logical attempt to explain the locational pattern of an economic activity and the manner in which its producing
areas are interrelated. the agricultural location theory contained in the von thünen model is a leading example
22. newly state that underwent industrialization after world war ii and whose economies have grown at a rapid pace
industrializing
country (nic)
23. outsourcing with reference to production, to turn over in part or in total to a third party
24. product life the introduction, growth, maturation and decline of a product
cycle
25. rust belt a region in the northeastern united states that was once characterized by industry. now so-called because of the
heavy deindustrialization of the area
26. secondary an area to which an innovation diffuses and from which the innovation diffuses more broadly
hearth
27. spatial fix the movement of production from one site to another based on the place-based cost advantages of the new site
28. sun belt the south and southwest regions of the united states
29. technopole center or node of high-technology research and activity around which a high-technology corridor is sometimes
established
30. time-space a term associated with the work of david harvey that refers to the social and psychological effects of living in a
compression world in which time-space convergence has rapidly reached a high level of intensity
31. verticle ownership by the same firm of a number of companies that exist along a variety of points on a commodity chain
integration