Commerce = the Sum of Many Parts

Lesson 8

Slide 8A

What Does That Mean?

Term Definition

industry a group of enterprises in a particular field, often named after its principal product such as the airlines industry or the healthcare industry.

economic geography

a branch of geography that studies where industries develop and why they develop in those locations.

Global Industry Classification Standards

GICS; a classification system used in the financial world which breaks businesses into sectors, industry groups, industries, and sub-industries.

sector an area of the economy in which businesses share the same or a related product or service.

Slide 8B

What Does That Mean?

Term Definition subindustry the smallest classification of businesses in the

GICS system; an industry which forms a part of a larger industry.

industry clusters specific industries which develop and become concentrated in a particular geographical area; a business ecosystem.

Small Business Administration

SBA; an independent agency of the federal government which promotes, aids, counsels, assists, and protects the interests of small business.

Slide 8C

What Does That Mean?

Slide 8D

Term Definition U.S. Cluster Mapping Project

an online, interactive tool developed by the Harvard Business School and U.S. Department of Commerce providing data to study the economic performance of U.S. business clusters.

cluster initiative policies and practices designed to attract business to a particular geographical region, and foster the development and success of an industry cluster.

ReminderSlide 8E

Remember to visit http://c21student.com/flashcards/

to access the online flashcards!

Lesson 8 Objectives

Explain how businesses that make up commerce are grouped for analysis and comparison.

List the benefits of industry clusters.

Locate industry cluster data using a cluster map.

Tell about the purpose of the Davos World Economic Forum.

Slide 8F

Does anyone know what these places have in common?

Silicon Valley

Boston’s Route 128

Detroit

Triangle Park, North Carolina

Torrey Pines Mesa, San Diego

The Port of Seattle

Hong Kong Science and Technology Park

Slide 8G

Commerce by Industry

Sectors represent wide segments of the economy

Sectors are divided into 24 industry groups

Industry groups are divided into 68 industries

Subindustries are a specific division of types of businesses

Slide 8H

Industry ClustersSlide 8I

Function as business ecosystems

Influence local infrastructure and

design

Attract wealth (employment) into a

geographic area

Develop organically and by

government cluster initiatives

Cluster Benefits Increased innovation

Collaboration

Specialized labor force

Reliable supply chain

Specialized infrastructure

Networking opportunities

Positive local relationships

Possible economic incentives for the company

clustermapping.us

Slide 8J

The Big PictureSlide 8K

Global commerce is the sum of many parts. The breadth of commerce is illustrated by GICS®. Industries often develop regionally. Industry clusters function as business ecosystems. Because of the prosperity and employment that industry clusters bring to a geographic region, many local, state, and national governments sponsor and promote their growth. Business and innovation clusters have shown to increase efficiency, productivity, innovation, and competitiveness. Governments are on the cluster bandwagon offering economic incentives like tax breaks and liberal policies to attract businesses into a cluster. Cluster maps enable easy research of types and locations of clusters, which can help you navigate your education and career path.

Ponder and Predict

Are the days of the crusaders, conquistadors, and great explorers truly behind us? Is it possible that their spiritlives on in the innovators and entrepreneurs of today? How are the innovators and entrepreneurs of today like the crusaders, conquistadors, and explorers of yore?

Slide 8L