Matching Quiz 1

Match the following terms with their correct definitions.


1				costs that are relatively unaffected in their amount or relative importance no matter where an industry is located


2				location near raw materials is chosen because it is easier to transport a refined product


3				activities whose transport costs are negligible for both production and marketing


4				when the locational decision of one firm is influenced by locations chosen by its competitors


5				areas tend to specialize in the production of items for which they have the greatest relative advantage over other areas


6				producing products or parts abroad in lower-cost manufacturing sites for domestic sale


7				the savings accrued from shared facilities


8				each new firm added to the agglomeration will lead to further development of infrastructure and linkages


9				costs that show significant differences from place to place in both the amount and relative contribution to the total cost of manufacturing


10				the relocation of firms to more isolated areas when costs of agglomeration exceed benefits


11				location near consumers is chosen when transportation charges for finished goods are relatively high in proportion to the total value of the good


12				the optimum location of a manufacturing establishment that minimizes transport costs, labor costs, and agglomeration costs


13				industries that are inseparable from their immediate markets and thus are widely distributed

Answer choices for questions 1 through 13

A)	Variable Costs
B)	Comparative Advantage
C)	Ubiquitous Industries
D)	Locational Interdependence
E)	Deglomeration
F)	Multiplier Effect
G)	Least-Cost Theory
H)	Material Orientation
I)	Footloose Industries
J)	Agglomeration Economics
K)	Outsourcing
L)	Market Orientation
M)	Fixed Costs