Understanding Your Regional Economy — The Economic Base Theory



Imagine that a car manufacturer is planning to build a car distribution center in the greater Cincinnati metropolitan region. Strategically, this would be a good choice for the car manufacturer, given that Interstate Highway 75 (1-75) is the main artery of the national car industry and Ohio lies in the midst of it. Economically, this would be great for the region, in that it would provide jobs and income for its workforce and new activities for regional businesses to supply the car manufacturer with goods and services.


Standard Industrial Classification Location Quotient North American Industry Classification System Basic Employment Employment Multiplier 
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