Semester 2 Review

1.  Situation costs are critical to a firm that wishes to

•  avoid skilled laborers.
• minimize production costs inside the plant.
•  minimize transport costs.
• identify unique characteristics of a particular industry.

 Producers of automobiles select assembly plant locations primarily for their closer access to

• government subsidies.
• raw materials
• water transportation.
•  labor markets.

1.  Soda bottling is an example of a

•  perishable industry.
•  labor intensive industry.
•  bulk-gaining industry.
•  communications-oriented industry.

 The Chicago area became a significant asset for the Western Great Lakes region owing to its steel industries and its

•  large market area.
  
  
• access to the nation's transportation network.
• greater distance from raw materials essential for the steel industry.
•  skilled labor force.

A company which uses more than one mode of transport will often locate near what?

• Factory
• Consumer Products 
• Raw materials 
• Break-of-bulk Point

Why are the factories in Mexico close to the border? 

• Where the best resources are
• The geography is best there
• Easy to ship in and out

What are the factories in Mexico called?

• Mariachi
• Maquiladoras
• Commercial Factories
• No factories in Mexico

According to Alfred Weber, which one of the following costs of production is the most important factor in locating a new industry?

• Labor
• Transportation
• Raw Materials
• Agglomeration Costs

Targets generally have Best Buys, Sally Beauty Salons, Famous Footwear, JC Penny, & Petsmarts near them. This is known as what? 

• Maquiladora Industires
• Just-in-time planning
• Agglomerations
• Outsourcing

AT&T having their call centers stationed in India and China is known as what industry practice? 

• Agglomerations
• Outsourcing
• NAFTA
• Special Economic Zones