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KEY ISSUE #2 – Chapter 11 INDUSTRY pp. 350-355. Why Are Situation Factors Important?
1.
Intro section. A company faces 2 geographical costs:
a.
b.
2. Situation factors involve__________________________________________________
____________________________________________________________________
PROXIMITY to INPUTS
3. Inputs are:_________________ __________________ ________________ and
_________________________________________ (2 words).
4. All manufacturers try to minimize the costs of transporting inputs to their factories and
transporting finished products from their plants to consumers. The farther something is
transported, the _____________________________. So a manufacturer tries to
___________________________ as close as possible to both ______________ and
________________.
 The optimal plant location is as close as possible to inputs IF__________________
_______________________________________________________________
 The optimal plant location is as close as possible to the customer IF____________
_______________________________________________________________
5. Every industry uses inputs from the physical environment such as____________________
____________________________________________________________________
6. Bulk-reducing industry definition is: ________________________________________
____________________________________________________________________
7. Looking at the map, where are the most copper mines located? p. 350_________________
8. Look at the same map, where are most of foundries located?_______________________
COPPER: a BULK-REDUCING INDUSTRY p. 350
1. What are 3 steps of copper production? Briefly describe the activity.
a.
b.
c.
d.
Fourth step is not-bulk reducing, so does not need to be near inputs.
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STEEL: CHANGING IMPORTANCE OF INPUTS
p. 350-351
1. Steel is an alloy of ___________ that is manufacturing by removing impurities such as:
__________________________________________________________________
2. Two principal inputs in steel production are: a._________________ b. _____________
3. Steelmaking demonstrates that when the source of inputs changes, the optimal location for
the industry changes. In the USA, the distribution of steel production has changed several
times because of changing inputs.
a. Mid-nineteen century:
1.
2.
b. Late 19th century:
1.
2.
c. Early twentieth century:
1.
2.
d. Late twentieth century:
1.
2.
4. For surviving steel mills in the USA, proximity to _____________ has become more
important than the traditional situation factor of proximity to ______________. p. 351
5. Looking at Figure 11-9, ________________ for steel production are more numerous than
integrated steel mills, and they are distributed around the country near local_________.
6. The largest mini-mill operator in the USA is _______________________. Rather than
iron ore and coal, the main input into mini-mill production is __________
__________.
PROXIMITY to INPUTS p. 350
Bulk –Gaining Industries
1. A bulk-gaining industry makes something that gains __________ or weight during
production.
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2. To minimize transport costs, a bulk-gaining industry needs to_______________________.
Fabricated Metals p. 352
3. A prominent example of bulk-gaining industry is the _____________________________
____________________________________________________________________
4. A fabricated-metal factory brings together metals such as steel and previously
manufactured parts as the main inputs and transforms them into a__________________
____________________________________________________________________
5.
Fabricators shape individual pieces of metal using as processes as: _________________,
______________, _____________, and ___________________.
6.
________________________ is the most critical factor in producing fabricated metals.
7.
Steelmakers traditionally locate near _____________________.
8.
Steel fabricators traditionally locate near _________________________.
9.
Machinery is fabricated for us in: _________, ___________, __________, _________.
10. Common fabricated goods are: ________________, _______________, ___________.
11. The largest market for fabricated metal and machinery manufacturers is ____________.
12. Global scale: _____ of vehicles sold in the USA are assembled in _____, and most of the
remainder are assembled in ___________ and ______________.
13. National scale: most assembly plants are located in the __________ of the USA, between
____________ and _________________.
14. Auto alley is formed by _________________________. Name 4 states I-65 runs
through: _____________, _______________, _______________, ____________.
Beverage Production p. 352
1. Beverage bottling is another good example of an industry that adds_________.
2. Principal input of a beverage container is _________. Interestingly enough, this liquid is
relatively bulky, heavy, and expensive to transport.
3. Name 3 ingredients that are much less bulky than #2’s answer: ________, _________,
___________.
4. Because water is available where people live, ________________________________
__________________________________________________________________
5. Why do bottlers locate near their customers rather than the manufacturers of the
containers?________________________________________________________
6. Look at Figure 11-12 p. 354. Brewing companies locate their plants near ____________
and most breweries are clustered heavily in the ____________________.
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Single-Market Manufacturers p. 354
1. Single-market manufacturers are specialized manufacturers with only: ____________.
2. Example of a single-market manufacturer is: ________________________________.
3. What are “just-in-time” parts?___________________________________________
__________________________________________________________________
4. List several car parts that are made by single-market manufacturers that are located
near final assembly plants: ______________ and __________________.
5. Why are some car parts not manufactured close to the customer?________________
Perishable Products p. 354
Examples of perishable products located near their customers to assure rapid delivery.
______________________________________________________________
2. Examples of fresh food located far from their customers: ___________, _________,
____________________, ____________________.
3. List 1 examples of a product other than food that is highly perishable: ____________.
Why is this product in decline?__________________________________________
1.
1.
Ship, Rail, Truck, or Air? P. 355
Trucks: pro and con because:
a.
b.
c.
2. Trains: pro and con because:
a.
b.
c.
3. Shifts are pro and con because:
a.
b.
c.
4. Air: pro and con because
a.
b.
5. Regardless of transportation mode, cost ___________________________________
6. Definition of break-of-bulk point: ______________________________________
_________________________________________________________________
7. Import break-of-bulk points include: ________________ and _________________.
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