Why would a store want to go to Green Hills area? Why would it not?

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Transcript of Why would a store want to go to Green Hills area? Why would it not?

-Use Webers theory of location to show where steel plants would be located. Consider transportation costs, labor availability, and agglomeration. -Plot five points! -Ask for specific data needed!

Why would a store want to go to Green Hills area? Why would it not?

Agglomeration: As more firms in related fields of business cluster together, their costs of production decline and their customer base grows.The ultimate result of the agglomeration effect is the formation and growth of a city. Agglomeration:NY/Wall Street (Finance firms)

Other examples of agglomeration?

Hollywood (agglomeration of film making firms)Sillicon Valley (hi-tech firms)

Automotive assembly plants in Tennessee

BTW, all these plants sit along what?

Deglomeration: Why?

Deglomeration occurs when the advantages of agglomeration are outweighed by its disadvantages: high land costs and rents, constricted sites, congestion, and pollution. The 1980s, for example, saw the movement of a number of major firms out of New York city.

Other examples?

Nissan Motor Co. announced Thursday it is moving its North American headquarters and nearly 1,300 jobs from California to the Nashville area to take advantage of the lower cost of doing business in the Southeast.

But they really didnt move to NashvilleCool Springs is product of deglomeration; Brentwood and Franklin for that matter.

-Use Webers theory of location to show where steel plants would be located. Consider transportation factors (where did we see this before?), labor availability, and agglomeration.

-Plot five points; there should be some space between the points (at least 100 km). On back of map, briefly explain each decision. Be prepared to share.

Global Division of Labor

What country or countries do you notice absent from the major suppliers for the 787? Why do you suppose?

Increased efficiency in production: Assembly line (less time) and just in time (less inventory)= more profit

I-65/I-75 Corridor

Detroits bankruptcy last fall cast a shadow over its efforts, as union opponents effectively tied imagery of the belly-up city to bloated union benefits. the Nissan plant in Smyrna, Tenn., which has gradually been replacing its full-time positions with temporary jobs that pay much less and grant no sense of stability.