AP AP Trade, Resources & Economic Geography 2 — Questions and Answers
Question 1: Weber's Least Cost Theory of industrial location argues that factories locate where:
- Labor costs are cheapest globally
- The combination of transportation, labor, and agglomeration costs is minimized (Correct answer)
- Markets are largest
- Government subsidies are greatest
Correct answer: The combination of transportation, labor, and agglomeration costs is minimized
Alfred Weber's model states that industries locate to minimize total costs, weighing transportation to raw materials and markets, labor costs, and agglomeration economies.
Question 2: Agglomeration economies occur when:
- A single firm dominates an entire market
- Businesses cluster together and benefit from shared infrastructure and labor pools (Correct answer)
- Governments merge economic planning with urban policy
- Trade agreements eliminate all tariffs between regions
Correct answer: Businesses cluster together and benefit from shared infrastructure and labor pools
Agglomeration economies arise when firms locate near each other, reducing costs through shared suppliers, specialized labor markets, and knowledge spillovers.
Question 3: The term 'deindustrialization' refers to:
- Building new factories in rural areas
- The decline of manufacturing in a region as jobs shift to services or move overseas (Correct answer)
- Converting agricultural land to industrial use
- Replacing human workers with robots in factories
Correct answer: The decline of manufacturing in a region as jobs shift to services or move overseas
Deindustrialization occurs when manufacturing employment and output decline in a region, often as production moves to lower-cost countries or economies shift to services.
Question 4: Just-in-time (JIT) manufacturing primarily relies on:
- Large warehouses storing excess inventory
- Efficient supply chains delivering parts exactly when needed to reduce storage costs (Correct answer)
- Vertically integrated firms that own all production stages
- Government-managed supply allocation
Correct answer: Efficient supply chains delivering parts exactly when needed to reduce storage costs
JIT manufacturing minimizes inventory costs by coordinating tightly with suppliers to deliver inputs only as needed, requiring reliable transportation and communication networks.
Question 5: Footloose industries are those that:
- Must locate near raw material sources
- Have significant freedom in choosing location because they are not tied to resources or markets (Correct answer)
- Require coastal or river access for shipping
- Depend on seasonal agricultural inputs
Correct answer: Have significant freedom in choosing location because they are not tied to resources or markets
Footloose industries, like software development or diamond cutting, can locate almost anywhere because they are not constrained by heavy inputs or perishable products.
Question 6: The concept of 'maquiladoras' refers to:
- Mexican government-owned factories producing for domestic markets
- Foreign-owned assembly plants in Mexico that import materials duty-free and export finished goods (Correct answer)
- Agricultural cooperatives along the US-Mexico border
- Joint US-Mexico environmental protection zones
Correct answer: Foreign-owned assembly plants in Mexico that import materials duty-free and export finished goods
Maquiladoras are factories in Mexico, especially near the US border, that assemble imported components for re-export, taking advantage of low labor costs and trade agreements.
AP AP Trade, Resources & Economic Geography 2
Weber's Least Cost Theory of industrial location argues that factories locate where: