Since labor tends to live in close geographic proximity to the firm site, higher employment levels mean greater income payments into the regional economy Economic impacts are quantified with respect to a geographic boundary. For example, if a state legislature is considering spending public monies to attract new businesses, then the regional economy to be affected should coincide with state political boundaries. Likewise, if a project or new firm affects only a county or municipality, the boundaries of the regional economy should be adjusted accordingly. The overall magnitude of economic impacts depend on the geographic boundary because transactions and income payments to parties outside the region are not included in any multiplier effects. Direct impacts measure sales, income and employment generated solely by the primary firm or industry.
Revenues are a measure of sales and includes the value of all products sold.
In the case of the citrus nursery industry, the principle product sold is the budded tree. The value of seed, budwood and liners sold within Florida are included in the value of the final budded tree. Value of industry output and income payments are measured in terms of dollars. Indirect impacts depend on the primary firm's purchases of materials and services from vendors within the region's geographic boundary. The purchases by the primary firm represent sales to the vendors which provide materials and services.