Exam 12: Clusterswhy Do Proximity and Place Matter

Gossip between workers in different firms represents which form of interdependency?

These refer to dense agglomerations of small and medium-sized firms specializing in the high-quality production of a particular good or service. They are characterized by a highly disintegrated production system in which individual firms perform specialized and narrowly defined roles.

This is an example of an important regional institution that contributes to institutional thickness at the regional scale:

Clusters essentially act as centers of __________________ transfer and control within wider global networks.

In these clusters, a single large firm, or small group of large firms, buys components from an extensive range of local suppliers to make products for markets external to the cluster. These clusters represent the spatial logic of just-in-time production systems.

This type of nearness is derived from a shared cultural heritage and linguistic background (e.g., the Irish, Jewish, or Chinese diasporas).

Vertical disintegration creates more _______________ transactional relationships within a particular sector.

The _____________ model of industrial location explains why dominant industries locate close to energy and raw material sources and to transportation networks.

Alfred Weber developed a general theory of location that could explain the spatial distribution of:

Industrial location theory posits that when the optimum location is drawn toward the raw materials sources, the manufacturing process is:

When discussing institutional thickness at the regional scale, the term "institution" is used to refer to a wide variety of ___________ organizations that are an integral part of regional economies.

Provide three concrete examples for how institutional thickness may foster untraded interdependencies between Hollywood firms in a film industry cluster.

This describes closeness derived from informal interpersonal relations (e.g., -standing friends in distant places).

Localized interpersonal interaction is thought to be particularly important for the transfer of what is known as _____________ knowledge.

Geographical dispersion creates different challenges of _________________ for firms.

These types of clusters provide business service activities such as financial services, advertising, law, accountancy, and so on, and are often concentrated in the central districts of leading or "global" cities.

Industrial location theory posits that when the optimum location is drawn toward the market site, the manufacturing process is:

This is a type of nearness engendered through both written rules and codes, and unwritten ways of doing things within a particular firm or institution (e.g., the corporate culture of a large transnational firm).

These clusters represent congregations of externally owned production facilities. These range from relatively low-tech assembly activity, through to more advanced plants with research capacity, but all are relatively stand-alone.

These are processes whereby firms shed many activities and purchase them instead from their suppliers in order to focus on core competencies.