1. Economic and Industrial Geography Terms

2. Foreign direct investment
The total of overseas business investments made by private companies

3. Purchasing Power Parity
A monetary measurement taking into account what money actually buys in a country

4. Technology Gap
The contrast between the technology available in the core and present in the periphery

5. Technology Transfer
The diffusion or acquisition by one culture or region of the technology possessed by another

6. Agglomeration
When a substantial number of enterprises cluster in the same area, as in a large industrial city, they can provide assistance to each other through shared talents, services and facilities

7. Agglomeration Economies
agglomeration economies refers to savings or benefits derived from the clustering of activities

8. Assembly Line/Fordism
Traditionally in large factories each worker was assigned one specific task to perform repeatedly

9. Bid Rent Theory
a geographical theory that refers to how the price and demand on land changes as the distance towards the CBD (Central Business District) increases.

10. Break of Bulk Point
The location (usually a port) where a shipment is divided into parts. This usually (such as at the port) happens where a transfer of the shipment between transport modes occurs, such as between water and land at a port.

11. Comparative Advantage
Principle whereby places and regions specialize in activities for which they have the greatest advantage in productivity relative to other regions----or for which they have the least disadvantage

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

13. Deindustrialization
a relative decline in industrial employment in core regions

14. Economies of Scale
Savings that accrue from large-scale production when the unit cost of manufacturing decreases as the level of operation enlarges

15. Ecotourism
Aims to inform about the natural environment

16. Export Processing Zone
Small areas within which especialy foavorble investment and trading conditions are created by governments in order to attract export oriented industries

17. Footloose Industry
an industry whose production costs are unaffected by location
many modern industries have components which are much easier to transport, giving them much more choice of location

18. Industrial Regions Western and Central Europe Eastern North America
Russia and Ukraine
Eastern Asia

19. Industrial Revolution
A series of improvements in industrial technology that transformed the process of manufacturing goods

20. Infrastructure The foundations of society: Urban centers
Transport networks
Communications
Energy systems
Educational facilities
Farms, factories, mines

21. International Division of Labor
The specialization by countries in particular products for export

22. Labor-Intensive
An industry for which labor costs comprise a high percentage of total expenses

23. Least-Cost Location
Model developed by Weber according to which the location of manufacturing establishments is determined by the minimalization of cost

24. maquiladora
Factories built by US companies in Mexico near the US border to take advantage of much lower labor costs in Mexico
Imported components or raw materials are assembled and then finished products are exported
An example of an export processing zone

25. Market orientation
Production of a good will be located near the market if the cost of transporting goods to consumers is a critical locational factor
Bulk gaining
Single market
Perishable
Example of a situation factor

26. Multiplier effect
Expansion of economic activity caused by the growth or introduction of another activity

27. NAFTA North American Free Trade Agreement 1994
Created a free trade area between US, Mexico and Canada
Provides for tariff free movement of goods, products, financial services, telecommunications, investment and patent protection

28. outsourcing
The process of transfering a function or service to a third party
Generally takes advantage of low wages in semi-peripheral or periphery countries

29. postindustrial
An emerging economy in technologically advanced countries as traditional industry is overshadowed by a high-tech productive complex dominated by services and info related and managerial activities

30. Resource orientation
If the weight and bulk of any one input is particularly great, the firm may locate near the source of that input to minimize transportation costs
Bulk reducing industries
Copper
Steel

31. Special economic zones (China)
SEZ’s
A specific area within a country in which tax incentives and less stringent environmental regulations are implemented to attract foreign businesses and investment
a geographical region that has economic laws that are more liberal than a country's typical economic laws

34. Substitution principle
From Weber, when one cost decreases a firm can endure higher costs in another area

35. Threshold/range
Range is the maximum distance people are willing to travel to use a service
Threshold is the minimum number of people needed to support the service

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

37. Weight gaining
an industry that makes something that gains volume or weight during production
Bulk gaining industries

38. Weight losing
An economic activity in which the final product weighs less than its inputs
Bulk reducing
Copper
Steel

39. World cities
Most closely integrated into the global economic system because they are at the center of the flow of information and capital
London
New York
Tokyo