Commerce = the Sum of Many Parts Lesson 8 Slide 8A

What Does That Mean? TermDefinition industrya group of enterprises in a particular field, often named after its principal product such as the airlines industry or the healthcare industry. economic geographya 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. sectoran area of the economy in which businesses share the same or a related product or service. Slide 8B

What Does That Mean? TermDefinition subindustrythe smallest classification of businesses in the GICS system; an industry which forms a part of a larger industry. industry clustersspecific 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 TermDefinition 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 initiativepolicies and practices designed to attract business to a particular geographical region, and foster the development and success of an industry cluster.

Reminder Slide 8E  Remember to visit rds/ rds/ 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 Clusters Slide 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 Picture Slide 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 spirit lives 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