AP Human Geography › Economic Restructuring
In a bulk-reducing industry, the inputs weigh more than the final product. Which of these statements is true about bulk-reducing industries and how they try to offset the costs related to product inputs?
These industries will generally be located near the source of inputs in order to minimize transportation costs.
Labor costs are minimized in bulk-reducing industries because of the extensive use of machinery.
To minimize transportation costs, these industries are generally located near where the final product will be sold.
Bulk-reducing industries have greater profits because they generally only sell to large-scale distributors.
The prices of the final products are greatly inflated to offset the costs related to the product inputs.
Since the inputs weigh more than the final products, and transportation is generally more expensive for heavier things, the bulk-reducing industries locate themselves near their inputs in order to pay less for the transportation of heavier items.
The shift in major urban areas moving from an economy based on industry to one based on a service-sector economy is known as __________.
economic restructuring
industrial privatization
commercial diversification
scientific management
imbalanced development
Economic restructuring is a phenomenon that has accelerated in the last part of the twentieth century and into the twenty-first century. Economic restructuring is the process in which economies move from a blue-collar industrial base, especially around heavy industry and factories, into more of a white-collar service sector. This process is typical in most major American cities, which has produced a thinner middle class and more menial jobs.
Why is longer-distance transportation cheaper per kilometer?
Companies pay for the labor of loading and unloading goods from vehicles, and this cost is usually the same no matter how far the material has traveled.
Longer-distance transportation is more likely to pass through a break-of-bulk point, which makes transportation easier.
The cost of purchasing a vehicle is the same no matter how much the material has traveled.
Buildings farther away from urban areas are cheaper, and therefore balance out the increased costs of transporting materials.
The cost of purchasing fuel is greatly decreased if purchased in bulk.
The cost of labor for loading and unloading goods from vehicles is considered a fixed cost, and this fixed cost doesn't change regardless of the distance traveled. Therefore, the longer the distance traveled, the cheaper the cost of transportation per kilometer traveled.
What name is given to the process of transferring service-based jobs to other countries?
Outsourcing
Fundraising
Deglomeration
Migrating
Agglomeration
It has become common in recent years for companies to transfer service-based jobs, particular call centers, to other countries. This is called “outsourcing.” This is generally done because the company knows it can save money by paying the outsourced workers a lower wage to do the same job.
Which of the following American regions is incorrectly matched with its specialty?
Hartford and tourism
Kansas and farming
Texas and energy
Los Angeles and entertainment
New York City and finance
All of the American regions are correctly matched with their regional economic specialties except Hartford. Hartford is a city in Connecticut and has an extremely high concentration of insurance industries. It is not known for tourism.
What name is given to a company that is comprised of many smaller firms who all specialize in one aspect of the company's product development or sale?
Conglomerate corporations
Transnational corporations
Multinational corporations
Joint-stock companies
Cottage companies
A “conglomerate corporation” is a company that is comprised of many smaller firms who all specialize in various aspects of the company’s product development and sale. So a large corporation might have different firms responsible for harvesting raw materials, manufacturing products for sale, transporting products to different markets, advertising and marketing, and so on. In the twenty-first century almost all major corporations are “conglomerate corporations.”
Which of these statements correctly explains the difference between "open shop" and "closed shop?"
In a closed shop, it is required that factory workers join the union. In an open shop, it is not required.
In a closed shop, new factory workers are not allowed into the union. In an open shop, new factory workers are allowed into the union.
In a closed shop, joining the union is not a condition of employment in factories. In an open shop, it is a condition.
In a closed shop, union members are not allowed to apply for jobs in the factory. In an open shop, they are allowed to apply.
In a closed shop, the "backdoor" is not open. In an open shop, the "backdoor" is open.
A closed shop place of employment is a place of employment that will only hire members of a labor union. It is "closed" because it is restricted to only union members.
In the 1990s, many economists thought that E-commerce was going to eliminate __________.
brick and mortar businesses
the retail industry
the manufacturing industry
the law of retail gravitation
the effects of globalization
E-commerce was the name given to any sales-related business conducted over the internet. When it first exploded in the 1990s, many economists expected E-commerce to completely eliminate and replace the business generated by actual in-person shops. These in-person shops are referred to as “brick and mortar businesses.” Instead, E-commerce has become an option available to consumers but not a replacement of traditional brick and mortar businesses.
All of the following are tertiary economic activities except __________.
agriculture
office work
teaching
shopkeeping
Tertiary economic activities are activities in the service sector. Agriculture is a primary economic activity, focusing on use of natural resources.
Which of these scenarios provides the best example of vertical integration?
A car manufacturer produces all of its own parts and then sells luxury vehicles in the international market.
A marketing company only hires for their upper-level positions from employees who already work at the company.
An electronics company based in Tokyo ships raw materials to independent companies in China to be made into computer parts.
The CEO of a company integrates the ideas of his employers into his business model.
A clothing company buys completed articles of clothing from several manufacturers and then sews on the company label before reselling.
Vertical integration happens when one company controls all aspects of its production process.