Chapter 13
What are the four offshore financial services centers identified by the International Monetary Fund, the United Nations and Tax Justice Institute?
(1) Dependencies of the United Kingdom (Anguilla, Cayman Islands, etc.) (2) Dependencies of other countries such as Cook Island, Niue, controlled by New Zealand, Aruba, Curacao, and Sint Maarten controlled by the Netherlands, and Hong Jong and Macau controlled by China (3) Independent island countries, such as the Bahamas, Barbados, Dominica, Grenada, St. Kitts & Nevis, St. Lucia, etc.. (4) Other independent countries: Andorra, Cyprus, Ireland, Liechtenstein, etc.
What are the two important functions of offshore centers in the global circulation of capital?
(1) Taxes are low or nonexistent. (2) Privacy - bank secrecy laws help individuals and business evade disclosure in their home countries (i.e., people can hide their money in offshore accounts so that creditors can not reach such assets.
Medieval Urban Settlements
- Dense network of small market towns serving the needs of particular lords covered much of Europe. - Largest medieval European settlements served as power centers for the lords, church leaders, and as major market centers. - Tallest and most elaborate structures were usually churches. - Usually surrounded by walls.
Linear rural settlements
-Buildings clustered along a road, river, or dike to facilitate communications - fields extend behind the buildings in long, narrow strips -French long-lot system (think Ramona) Example is the French long-lot system.
Profitability of a location (three steps)
1. Compute the range (How far are people willing to drive to your location for this service?) 2. Compute the threshold (how many people does this service need in order to be profitable) 3. Draw the market area. (how many people live within this range)
Steps for determining profitability for a service
1. Define market area 2. Estimate the range 3. Estimate the threshold 4. Predict market share (i.e., what % of people will use this service?) 5.
What are the three characteristics of urban settlements or cities?
1. Large size, 2. high population density 3. socially heterogenous people (theory developed by Wirth)
What are the key contributors to the severe economic recession in 2008?
1. Rapid rise in real estate prices, leading to speculators acquiring for quick turn around. 2. Poor judgment in lending institutions. 'subprime' mortgages to individuals with poor credit history. 3. Invention of new financial services practices such as derivatives (investors bought and sold risky assets and expected value would rise, 4. Decisions by government agencies to reduce or eliminate regulation of practices of financial institutions. 5. Unwillingness of financial institutions to make loans once the recession started.
What are the key services within health and social services? Note what % each subtype of service represents in your answer.
1/3 are in hospitals, 1/2 in other health care services (doctors offices and nursing homes), 1/6 in social assistance. [Note this does not add up to 100%]
What % of all US jobs are in business services?
1/4 of all jobs are in the business services.
In north-central North Dakota - what is the average number of inhabitants the average range and market area in village
100-999 inhabitants, average range of 20 km (12 miles) and market area of 1200 square KM (500 sq miles)
In north-central North Dakota - what is the average number of inhabitants the average range and market area in small town
1000-5000 inhabitants, average range of 30 km (20 miles) and market area of 2800 square KM (1200 sq miles)
What % of people live in urban settlements in developed vs developing countries?
3/4 live in urban areas in developed vs. 2/5 for developing. The only exception is Latin America where more live in urban areas.
What are the key services within leisure and hospitality services? Note what % each subtype of service represents in your answer.
3/4 of leisure and hospitality jobs are in restaurants, bars, and lodging. 1/4 are the arts and entertainment.
What % of US jobs are in education services excluding public school teachers?
9.5% of all US jobs are in education services if public school teachers are excluded.
In north-central North Dakota - what is the average number of inhabitants the average range and market area in hamlet
<100 inhabitants, average range of 15 km (10 miles) and market area of 800 square KM (300 sq miles)
What shape is utilized to represent a market area and why?
A hexagon. Geographers draw hexagons around settlements. Hexagons represent a compromise between circles and squares.
Central Place
A market center for the exchange of goods and services by people attracted from the surrounding area. Reason is to maximize accessibility.
Gravity Model
A model that holds that the potential use of a service at a particular location is directly related to the number of people in a location and inversely related to the distance people must travel to reach the service.
Primate City Rule
A pattern of settlements in a country, such that the largest settlement has more than twice as many people as the second-ranking settlement.
rank-size rule
A pattern of settlements in a country, such that the nth largest settlement is 1/n the population of the largest settlement. (e.g., the second largest city is 1/2 size of the largest, the 4th largest city is 1/4 the size of the largest)
Settlement
A permanent collection of buildings where people reside
Clustered rural settlement
A rural settlement in which the houses and farm buildings of each family are situated close to each other and fields surround the settlement.
Dispersed rural settlement
A rural settlement pattern characterized by isolated farms rather than clustered villages.
dispersed rural settlement
A rural settlement pattern characterized by isolated farms rather than clustered villages.
Central Place Theory
A theory that explains the distribution of services, based on the fact that settlements serve as centers of market areas for services; larger settlements are fewer and farther apart than smaller settlements and provide services for a larger number of people who are willing to travel farther.
What percentage of financial services jobs are in banks and other financial institutions?
About 1/2 of financial services jobs are banks and other financial institutions.
What percentage of financial services jobs are in insurance companies?
About 1/3 of financial services jobs are in insurance companies.
What % of all US jobs are in the public sector?
About 10% of all jobs are in the public sector.
What % of all US jobs are in the professional services?
About 11% of all US jobs are in the professional services.
What % of all US jobs are in retail and wholesale?
About 14% of all US jobs.
What % of transportation and information jobs are in information services and utilities?
About 40% of transportation and information jobs are in information services and utilities.
When did settlements exist?
About 5000 years ago
What percent of all US jobs are in the financial services?
About 7% of all US jobs are financial services
What percentage of all US jobs are in banks and other financial institutions?
About 7% of all US jobs are financial services and about 1/2 are in banks and other financial institutions. Thus about 3.5% of all US jobs are in banks and other financial institutions.
What % of all jobs are in transportation and information services?
About 7% of all US jobs are in transportation and information services.
What % of all US jobs are in information services?
About 7% of all US jobs are in transportation and information services. About 40% of transportation and information jobs are in information services and utilities. Thus about 2.8% of all US jobs are in information services.
What % of all US jobs are in transportation?
About 7% of all US jobs are in transportation and information services. Transportation accounts for about 60% of transportation and information services jobs. Thus about 4.2% of US jobs are in transportation-related services.
What % of US jobs are in leisure and hospitality services?
About 9% of all US jobs are in leisure and hospitality services.
What % of US jobs are in arts and entertainment?
About 9% of all US jobs are in leisure and hospitality services. One fourth of leisure and hospitals services are services in arts and entertainment. Thus it is about 2.25%
What % of US jobs are services in the restaurants, bars, and lodging?
About 9% of all US jobs are in leisure and hospitality services. Three fourths of leisure and hospitals services are in restaurants, bars, and lodging. Thus it is about 6.75%
What % of the GDP is derived from services in the US?
According to figure 12-2, it is 70% and above.
What countries have more than 70%+ of their GDP derived from services?
According to figure 12-2, it is the US, many countries in Western Europe and Australia, Japan, and Namibia.
Example of settlements specializing in military activity support services?
Albuquerque, Colorado Springs, Huntsville, Knoxville and Norfolk
Urbanization
An increase in the percentage and in the number of people living in urban settlements.
What % of US jobs are in health and social services?
Approx. 14% of all US jobs are in health and social services.
What % of US jobs are other health care services?
Approx. 14% of all US jobs are in health and social services. 1/2 of health and social services jobs are in health care services. Thus approximately 7%
What % of US jobs are hospital services?
Approx. 14% of all US jobs are in health and social services. 1/3 of health and social services jobs are in hospitals. Thus approximately 5%
What % of all US jobs are in wholesale?
Approximately 1/4 of retail and wholesale jobs are in wholesale. Since retail and wholesale jobs comprise about 14% of all jobs, this is about 3.5% of all US jobs
nodal region
Area organized around a node or focal point. The characteristic chosen to define this kind of region dominates at a central focus or node and diminishes in importance outward. This region is tied to the central point by transportation or communication systems or by economic or functional associations. (functional region)
Example of settlements specializing in military bases?
Arlington
Example of settlements specializing in entertainment and recreation?
Atlantic City, Las Vegas and Reno
Who further developed Central Place Theory in the 1950s?
August Losch in Germany and Brian Berry and others in the US further developed the concept during the 1950s.
Example of settlements specializing in high-tech industries support services
Austin, Orlando, and Raleigh-Durham
What are the two types of Economic Bases?
Basic Industries and Nonbasic Industries.
Example of settlements specializing in computing and data processing services?
Boston and San Jose
How many Daily Urban Systems (DUS) are located in the US?
Brian Barry, CA Doxiadis, and the US Dept of Commerce allocated the 48 contiguous states to 171 functional regions centered around commuting hubs, which they call daily urban systems.
What data source can be used to estimate the potential population within a market area?
Census data.
Who first proposed Central Place Theory?
Central Place Theory was first proposed by German geographer Walter Christaller.
What is the frequency of a periodic market in rural China
China has a three-city, 10-day cycle of periodic markets. Typically three locations. Three 10-day cycles fit in a lunar month.
After the collapse of the Roman Empire, most of the largest urban settlements were located in which country?
China.
Why are circles NOT used to represent a market area?
Circles would result in gaps if placed on a map. Circles are equidistant from center to edge, but they overlap or leave gaps. An arrangement of circles that leave gaps indicates that people living in gaps are outside the market area of services, which is obviously not true. Overlapping circles are also unsatisfactory for one service or another will be closer, and people will tend to patronize it.
How did Florida measure talent?
Combination of % of people with college degrees, % employed scientists or engineers, and % employed as professionals or technicians. He used 3 measures of cultural diversity: # of cultural facilities per capita, % of gay men, "coolness" index.
What are the types of service?
Consumer, Business and Public
Cultural factors
Cultural factors include presence of renowned cultural institutions, influential media outlets, sports facilities, and education institutions.
What are retail and wholesale services?
Department stores, grocers, motor vehicle sales, wholesalers who provide merchandise to retailers. [Note that this may not be a comprehensive definition for retail]
Developed countries have numerous [select: small or large] settlements with [select: small or large] thresholds and ranges and far fewer [select: small or large] thresholds and ranges.
Developed countries have numerous small settlements with smallthresholds and ranges and far fewer large thresholds and ranges.
early consumer services
Earliest consumer services may have been services for places to bury the dead, housing for families, making household objects, educating children, settlements for manufacturing of tools, lothing .
Prehistoric urban settlements
Earliest urban settlememts likely in the Fertile Crescent (Ur, Mesopotamia)
Economic factors for global cities
Economic factors include number of headquarters for multinational corporations, financial institutions, and law firms that influence the global economy.
What factors are used to identify and distinguish global cities?
Economic factors, political factors, cultural factors and infrastructural factors.
What % of US jobs are in Education services?
Education services comprise of about 15% of all US jobs.
Ancient Urban Settlements
Established in the eastern Meditteranian (Knossos on the island of Crete, Troy in modern day Turkey, Mycenae and Athens in Greece, Rome in modern day Italy)
What percent of public sector employees work for the 50-state governments? (i.e., are state employees)
Excluding educators, 1/4th of the public sector works for one of the 50 state governments.
What percent of public sector employees work for the federal government?
Excluding educators, 1/6th of public sector employees work for the federal government.
What percent of public sector employees work for the local governments?
Excluding educators, 3/5ths of the public sector works for local governments.
What is the acronym for financial services? and what does the acronym stand for?
F.I.R.E Stands for finance, insurance, real estate.
Which jobs grew more slowly in the business sector from 1972-2010 and why?
Finance and transportation services grew more slowly because of improved efficiency and need for fewer employees. [i.e., companies may have invested in automation or outsourced less skilled jobs to other countries].
What pieces of information do you need to know in order to understand the extend of a market area?
Geographers need to the know the (1) range and (2) threshold of a service.
Global Cities/World Cities
Global cities are at the center of the flow of information and capital. Business services, including law, banking, insurance, accounting, and advertising, concentrate in disproportionately large numbers in global cities. The book also calls them the center for the "provision of services" in the global economy.
What are the three levels of global cities?
Global cities are divided into three levels: alpha, beta and gamma.
Headquarters of large corporations are typically clustered in what type of city?
Headquarters of large corporations are typically clustered in global cities. Shares of these corporations are bought and sold on stock exchanges located in global cities.
Which services grew in consumer sector from 1972-2010
Health care services, including hospital staff, clinics, nursing homes, and home health-care programs grew. Other large increases have been recorded in education, entertainment and recreation.
What is the frequency of a periodic market in AFrica?
In Africa, the markets occur every 3 to 7 days.
What is the social difference for urban versus rural differences due to the large size?
In cities, you know only a small percentage of other residents and most relationships are contractual.
city-state
Independent self-governing communities that incldued the settlement and nearby countryside.
What were the hardest-hit communities during the recession of 2008 in the United States?
Industrial centers in the Midwest due to bankrupt carmakers Chrysler and GM were based. The hardest hit community were in the South and West (I.e., Florida, Southwest, and the Great Lakes area.) which had most prosperous. The communities were affected in declines in service, especially real estate and finance.
Basic Industries
Industries that sell their products or services primarily to consumers outside the settlement
Infrastructural factors
Infrastructural factors include a major international airport, health-care facilities, and advanced communication systems.
What are typical back-office or business-process outsourcing (BPO) functions?
Insurance claims processing, payroll management, transcription work, and other routine clerical activities, responding to billing inquiries for credit cards, shipments, claims, technical inquiries.
What does the presence of the rank size rule indicate?
It indicates that the society is sufficiently wealthy to justify provision of goods and services to consumers throughout the country. Absence of rank-size distribution means that people must travel long distances to reach an urban settlement and may not have access to sevices such as hospitals.
If a consumer service has a small threshold, what does this mean?
It means that only a small number of customers are required in order for the service to be profitable.
If a consumer service has a short range, what does that mean?
It means that people will only travel short distance to acquire the product.
What is a distinctive feature of the 2008 (early 21st century) recession?
It rapidly affected every other region of the world. (it was a global recession). But the impact varied by region and locality.
What is the frequency of a periodic market in Korea.
Korea has two 15-day market cycles in a lunar month
Examples of settlements specializing in general business services
Large metropolitan areas, especially Chicago, Los Angeles, New York and San Francisco
What % of the GDP is generated by the service sector in developing countries?
Less than 1/2
What factors make certain developing countries more favorable than others for BPO functions?
Low wages and ability to speak English.
Where did settlements originate?
Mesopotamia an diffused to Egypt or China, to Indus valley or they may have formed independently.
If Mexico follows the primate city rule. How much larger is the largest city, Mexico City, compared to the second-largest city, Guadalajara?
Mexico City is 5 times larger than Guadalajara
Do global cities tend to be the centers of national or international political power?
Most are national capitals.
What is the frequency of a periodic market in muslim countries.
Muslim countries typically conform to the weekly calendar. Once a week in each of six cities and no market on Friday, the Muslim day of rest.
Department stores, grocers, and motor vehicles and service account for what % of US jobs?
Nearly 1/2 or 50% of retail and wholesale services jobs are department stores, grocers, and motor vehicle sales. Since retail and whole services comprise about 14% of all US jobs. Department stores, grocers, and motor vehicles and service account for about 7% of all jobs.
Department stores, grocers, and motor vehicle sales and service account for what % of retail and wholesale services?
Nearly 1/2 or 50% of retail and wholesale services jobs.
What % of all jobs in the US are in consumer services?
Nearly one-half
Which cities are ranked alpha ++?
New York and London.
What are the alpha cities in the US?
New York, Chicago, Washington DC, Boston, Philadelphia, Dallas, Los Angeles and San Francisco
What factors were expected to reduce the need for clustering of services in large cities?
New forms of transportation (railroad, motor vehicles, airplanes) and communications (i.e., telegraph, telephone, internet). Note however, that while some of these activities have decentralized, they tend to converge in large cities.
What are the two types of business services that developing countries specialize in?
Offshore financial services and back-office functions.
What sector has grown in employment in the US?
Only the service sector has growth in the United States. Employment in primary and secondary sector activities has declined. [note that in the book this is only shown from 1972 - 2010]
What is the social difference for urban versus rural differences due to the social heterogeneity?
People in urban settlements have greater freedom to pursue unusual professions, sexual orientation, or cultural interest. large urban settlements tend to be more tolerant of diverse social behavior.
What is the social difference for urban versus rural differences due to high density?
People tend to be specialized in urban settlements and tends to be competitive.
Political factors
Political factors include hosting headquarters for international organizations and capitals of countries that play a leading role in international events.
What are the three main types of business services?
Professional services, financial services and transportation services.
What is the locational factor critical for a service?
Proximity to market
Early public service
Religios activities. soldiers,
What are the main types of consumer services?
Retail [note that this also includes wholesale services], education, health, and leisure
Example of settlements specializing in Medical services?
Rochester, Minnesota
What are some factors considered for determining the threshold?
SIze of the potential target population. Age, income, single vs. married, etc.
Example of settlements specializing in public services in state capitals?
Sacramento and Tallahassee
What % of all consumer services jobs are in retail and wholesale?
Since 14% of all US jobs are in retail and wholesale, and 46% of all jobs are in consumer services, so about 30%
What percentage of financial services jobs are in real estate?
Since about 50% are in bank and other financial institutions, ~33% are in insurance - so about 20% is in real estate.
Smaller settlements generally have small or large thresholds? Short or long ranges? Small or large market areas?
Small thresholds, short ranges, and small market area.
Distribution of Talent
Some cities have a higher percentage of talented indivdiausl than others.
Why are squares NOT used to represent a market area?
Squares can nest without gaps, but the variation is more from the center (ie, market area).
What types of jobs are in support services?
Support services include clerical, secretarial, and custodial work.
What are possible ways to compute the range for a market area?
Survey, look at economic factors such as income in the market area.
What types of jobs are in technical services?
Technical services include law, management, accounting, architecture, engineering, design, and consulting.
What is the equation for calculating a community 's basic industries?
The % of workers employed is a settlement is compared to the % of all workers in the country employed in that industry. If the % is higher in the local community, then that type of business is a basic economic activity.
What was the GNI ppp change from previous year in 2009 for developed countries?
The GNI ppp change in 2009 was +3% for developing countries.
What was the GNI ppp change from previous year in 2009 for the world?
The GNI ppp change in 2009 was -2% for the world.
What was the GNI ppp change from previous year in 2009 for developed countries?
The GNI ppp change in 2009 was -4% for developed countries.
Which area in the US have expanded their provision of business services more rapidly?
The North and East parts of the US have expanded provision of business services more rapidly.
Which country follows the primate city rule?
The United States
market area (hinterland)
The area surrounding a central place, from which people are attracted to use the place's goods and services. It would be the area of the hexagon.
Daily Urban System
The area surrounding an urban center with which there is a substantial amount of commuting traffic
Based on Christaller's analysis (documented in the US by Berry), what is the average population of the smallest settlement (market hamlet) and market area and distance between hamlets?
The average population is 800, with market area of 45 square KM /17 sq miles, average distance was 7 KM (4.4 mils).
What is the average range for a fast-food franchise, casual dining chain and stadium in a large urban settlement?
The average range for fast food is 5 km/3 miles; casual dining 8 km/5 miles; stadium 100 km//60 miles or more.
Circular rural settlements
The circular form consists of a central open space surrounded by structures. (e.g., Kraal villages in Africa, Gewandorf settlements in rural Germany.)
What impact did the early 21st recession have on the world GNI?
The early 21st recession resulted in an absolute decline in world GNI for the first time since the 1930s. [this time point is relevant since that is the time around the Great Depression].
What type of economic base is important to stimulate growth in a community?
The export of basic industries and new basic industries stimulate growth.
What are the four different levels of market area?
The four different levels of market area - hamlet, village, town and city.
primate city
The largest settlement in a country, if it has more than twice as many people as the second-ranking settlement.
Range
The maximum distance people are willing to travel to use a service. In a hexagon, it would the radius.
Threshold
The minimum number of people needed to support the service.
What is the principal enticement for the distribution of talent?
The principal enticement for talented individuals to cluster in some cities more than other is cultural rather than economic. (study done by Richard Florida)
Enclosure Movement
The process of consolidating small landholdings into a smaller number of larger farms in England during the eighteenth century. The Enclosure Movement brought greater agricultural efficiency, but destroyed village life. Many farmers moved to urban settlements (it coincided with the Industrial revolution)
What is the principal purpose of business services?
The purpose of business services is to facilitate the activities of other business
What is the purpose of public services?
The purpose of public services is to provide security and protection for citizens and businesses.
What is the name of the additional category in Public Services besides Government Workers?
The second category is call "Other US jobs" [Figure 12-5] or "Other services" [in paragraph].
What sector has seen / driven most of the growth in employment / jobs worldwide?
The service sector has driven growth world-wide.
Which sector was impacted the most by the severe recession in 2008?
The service sector was most impacted by the severe recession.
Which services in the consumer sector remained stable?
The share of retail jobs has not increased.
What are the two main types of professional services and what % of professional services jobs do they represent?
The two major categories are Technical services (~60% of professional services jobs) and support services (~40% of professional services jobs).
Who are O hUallachain and Reid?
They are geographers who have documented examples of settlements that specialize in particular types of services?
Why are leisure services of national significance likely to cluster in global cities?
They exist because they require large thresholds and large ranges and in party because of the presence of wealthy patrons.
What is the purpose of consumer services?
To provide services to individual consumers who desire them and can afford to pay for them
Which city is the world's largest settlement today?
Tokyo
What % of jobs in transportation and information services are in transportation?
Transportation accounts for about 60% of transportation and information services jobs.
What types of jobs are in transportation and information services?
Trucking and warehousing are the main jobs in transportation. Information services jobs include publishing and broadcasting, as well as utilities such as water and electricity.
Example of settlements specializing in large universities?
Tuscaloosa
What % of the GDP is generated by the service sector in most developed countries?
Two-thirds of GDP
% of space occupied by settlements?
Under 1%
When did Christaller first propose Central Place Theory?
Walter Christaller first proposed Central Place Theory in the 1930s.
Example of settlements specializing in management-consulting services?
Washington DC
Primary Sector
Where workers extract materials from Earth through agriculture, and sometimes by mining, fishing, and forestry; the portion of the economy concerned with the direct extraction of materials from Earth's surface, generally through agriculture, although sometimes by mining, fishing, and forestry
Which jobs within the business sector have expanded the most rapidly from 1972-2010?
Within business services, professional services, data processing, advertising, and temporary employment agencies expanded most rapidly.
Does the market area of every service vary?
Yes.
periodic market
a collection of individual vendors who come together to offer goods and services in a location on specified days (example is a farmers market)
Clustered rural settlement
an agricultural-based community in which a number of families live in close proximity to each other, with fields surrounding the collection of houses and farm buildings
service
any activity that fulfills a human want or need and returns money to those who provide it.
Tertiary Sector of the economy
economic activities related to delivering services, including the creation and distribution of information
Nonbasic Industries
enterprises whose customers live in the same community, essentially consumer services (i.e., grocer stores, laundromats, restaurants).
Clustered Settlements in Colonial America
homes and public buildings around center common; favored because-- could live in the group they traveled with, reinforce common cultural and religious values, defense against Indians; Parcels for each villager provided dif crops; land could be given to outsiders; when too many peeps they make new settlements; present New England towns have same layout except shops not farms
When did the population of urban settlements exceed that of rural settlements?
in 2008
Three sectors of the economy
primary, secondary, tertiary
secondary sector of the economy
the part of the economy that transforms raw materials into manufactured goods
Early business services
transportation services began when people brought in extra food for hard times; not every group had the same resources because of various landscapes so people brought in extra to trade with other people in the group; households became food storage centers and neutral group where people could safely trade food with the help of producer services who regulated terms of transactions, fair prices, records, and currency systems
What % of US jobs are in Public Services - Other services
~5% of US jobs are in "other services" public services.
