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.

A location where large shipments of goods are broken up into smaller containers for delivery to local markets.

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

factors that cause a producer's average cost per unit to fall as output rises

a port, city, or other center to which goods are brought for import and export, and for collection and distribution.

areas where governments create favorable investment and trading conditions to attract export-oriented industries

Alfred Weber, the selection of optimal factory locations has much to do with the minimization of land, labor, resource, and transportation costs, variable-cost framework that affects location of factory sites

the basic physical and organizational structures and facilities (e.g., buildings, roads, and power supplies) needed for the operation of a society or enterprise.

Transfer of some types of jobs, especially those requiring low-paid less skilled workers, from more developed to less developed countries.

An industry for which labor costs comprise a high percentage of total expenses.

The products that are produced and shipped to another country. This is very common as production costs in other countries is often cheaper, which explains why a country would import a product rather than produce it themselves.

Factories built by US companies in Mexico near the US border to take advantage of much lower labor costs in Mexico.

North American Free Trade Agreement; allows open trade with US, Mexico, and Canada.

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

economy that emphasizes services and technology rather than industry and manufacturing

tendency for an industry or other type of economic activity to locate close to its resources

A company that conducts research, operates factories, and sells products in many countries, not just where its headquarters or shareholders are located.

costs that vary with the quantity of output produced (ex. piece rate labor)

When a product undergoes the gain of net weight by combining several things together to create a larger product.

raw materials weigh more than the finished product, so the factory needs to be close to the resources

the process of developing machine production of goods

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

geographical economic theory that refers to how the price and demand on real estate changes as the distance towards the Central Business District (CBD) increases.

the ratio of output to input for a given carrier

the ability to produce a good at a lower opportunity cost than another producer

A process through which tendencies for economic growth are self-reinforcing; an expression of the multiplier effect, it tends to favor major cities and core regions over less-advantaged peripheral regions

The process of industrial deconcentration in response to technological advances and/or increasing costs due to congestion and competition.

"sections" of an economy. The three sectors are the primary, secondary, and tertiary sectors.

A form of tourism, based on the enjoyment of scenic areas or natural wonders, that aims to provide an experience of nature or culture in an environmentally sustainable way.

Costs that do not vary with the quantity of output produced (ex. rent)

Natural situation in which heat is retained in Earth's atmosphere by carbon dioxide, methane, water vapor, and other gases

Economic stimulus associated with technopoles; Concentration of high value economic development attracts even more development. Each time businesses are attracted to growth pole, "magnets" becomes even stronger and attracts even more

Hypothesis proposed by Halford MacKinder that held that any political power based in the heart of Eurasia could gain enough strength to eventually dominate the world.

Nicholas Spykman's theory that the domination of the coastal fringes of Eurasia would provide the base for world conquest.

1. Eastern North America, 2. Northwestern Europe, 3. Eastern Europe, and 4. East Asia

A period of rapid growth in the use of machines in manufacturing and production that began in the mid-1700s

A site chosen for industrial development where total costs are theoretically at their lowest, as opposed to location at the point of maximum revenue

1. Eastern Anglo America, 2. Western and Central Europe, Eastern Europe, and Eastern Asia

-Industrial Parks: An area of land developed as a site for factories and other industrial businesses.

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An effect in economics in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent.

factory is located close to market and supplier to reduce need for stock items, and supplies, "Just in time" delivery.

Future shortages of non-renewable energy sources with increased demand, solvable by use of renewable energy.

In 1979, the Chinese government set up these zones on the coast near Macao, Hong Kong and Taiwan. Improved transportation, lower taxes, and other incentives attracted investments from foreign businesses. They helped stimulate innovation and helped China grow economically.

In industry, the tendency to substitute one factor of production for another in order to achieve optimum plant location.

the rapid innovation of communication and transportation technologies associated with globalization that transforms the way people think about space and time

A group of cities that form an interconnected, internationally dominant system of global control of finance and commerce

Location factors related to the costs of factors of production inside the plant, such as land, labor, and capital.

These factors involve transporting materials to and from a factory. A firm seeks a location that minimizes the cost of transporting inputs to the factory and finished goods to consumers.