AP Human Unit 6 Review

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

• avoid skilled laborers.

• minimize production costs inside the plant.

• minimize transport and shipping costs.

• identify unique characteristics of a particular industry.

• operate where resources are least expensive

Suppliers to automobile assembly plants select locations primarily to

• access government subsidies.

• access raw materials

• minimize break of bulk.

• access labor markets.

• serve their customer base

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

• Factory

• Consumer Products

• Raw materials

• Break-of-bulk Point

• Markets

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 to the American markets

• Labor is cheapest in that part of Mexico

• NAFTA requires them to be there

What are the factories in Mexico called?

• Vertically integrated

• Maquiladoras

• Footloose industries

• No factories in Mexico

• Call centers

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

• Marketing

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

• Maquiladoras

• Just-in-time inventory

• Agglomeration

• Outsourcing

• Break in bulk

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

• Agglomerations

• Offshoring

• NAFTA

• Special Economic Zones

• Vertical integration

According to Weber, if a product is heavier when it arrives at the factory than when it leaves (trees--> paper, potatoes-->chips) the factory should be

• closer to the market

• closer to the inputs

Shows the influence of women in a society by measuring women's income, participation in labor force, and political influence.

• IHDI

• GNP

• PPP

• GDP

• GII