GEOG-1026EL Study Guide - Quiz Guide: Horizontal Integration, Batch Production, Location Theory
2 Aug 2020
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Alfred weber: manufacturing: manufacturers have three different kinds of costs. Production costs production in the factory. Distribution costs transporting finished goods + maintaining a sales force. Assembly costs buying + transporting materials to the factory. Assembly costs: primary concern of classical industrial location theory. = characteristics of a specific location, also the total influences on the location. Hard factors (profit, business success) and soft factors (quality of life, cultural) Each specialising: reduce transaction costs, vertical + horizontal integration. Advantages of co-location of firms in the same industries. Untraded interdependencies that make these districts work: innovative milieu (hot spots of innovation associated with converging technologies, firms embedded in local institutions (e. g. work training, entrepreneurs embedded in social practises and institutions (e. g. golf clubs. Michael porter, identify local clusters of related economic activity work out strengths and weaknesses aid planning for regional development. Post war era: dozens of electronic firms were spun off.
