Chapter 12 Services

Services: Tasks that you

pay others to do for you.

A shift toward a

“postindustrial”

or “post Fordist”

economic order

Deindustrialization: A relative decline

in industrial employment in the core

basic industries: economic activities that provide

income from sales to customers beyond city limits.

nonbasic functions: economic

activities that serve a city’s own

population.

regional multiplier:

The multiplier is

the total number of

jobs created in the

basic and nonbasic

sectors for each

new basic job in a

region.

To induce Toyota to build its U.S. production

facilities in Kentucky,

the state spent $49 million to buy the 1,500-acre

site (32,667/acre),

$40 million to construct roads and sewers, and

$68 million to train new workers. Kentucky also

agreed to spend up to $168 million to pay the

interest on loans should Toyota decide to borrow

money to finance the project? Did Kentucky

overpay to win Toyota’s business? Assess,

Evaluate?

backward

linkages: firms

that supply with

components and

services

forward

linkages: firms

using output.

ancillary

activities:

activities such as

maintenance,

repair, security,

and haulage

services variety

of industries.

Regional Growth

Regional Growth

Regional Growth

The factors of production (L,L,C) are less

important for service industries than for

manufacturing.

Market accessibility is more relevant

However, some types of services, can

operate almost anywhere

Call Centers: India

tertiary activities:

takes the goods that

are produced and

manufactured by

the primary and

secondary sectors

and either sells

them to consumers

or uses them to

perform services

for consumers.

In recent years, geographers have begun to identify a

fourth type of activities - quaternary activities.

These are mainly found in nations with more

complex economic structures, and they embrace

services that are highly skilled and professional in

nature.

Examples include research and development work,

information processing and management.

quaternary industries(white

collar jobs): financial,

insurance, real estate

(FIRE), health services,

entertainment, education,

and management

(pneumonic device: make

quarter the amount of

money as quinary)

And maybe a 5th sector

quinary industries (gold

collar jobs): high-level

management,

administration and

executive decision

makers. There are fewer

of these jobs, but they are

some of the highest-

paying.

Economic Structure

5 sectors of the economy:

• Primary: Agriculture, gathering/extracting

• Secondary: Manufacturing, processing,

construction, power production

• Tertiary: Retail/wholesale trade, personal

and professional services

• Quaternary: Information, research,

management

• Quinary: Executive decision makers

Or post industrial

Sketch

The balance between these activities will

vary from place to place.

Discuss the historical economic

structure changes in the US and how it

affected migration.

• The US shifted from an agricultural

economy to an industrial economy

(primary to secondary)

• This promoted immigration from

Europe with an increase in factory

jobs.

The US then shifted from secondary to tertiary.

(economic restructuring)

• demand for educated experts (some from

abroad)

• Many citizens have taken higher paying

service jobs instead of manufacturing

• Immigrants have been able to take many

low-wage/low statues jobs that citizens are

not interested in (ag and manufacturing)

• Thus restructuring has pulled some

immigrants in.

Why have Europeans, Latin Americans,

and Asian moved away from their

countries:

• Lack of jobs

• Poverty

• poor economic opportunity

Migration has a lot to do with Demographic

Transition

3 Types of Services:

1. Consumer Services: Businesses that provide services to individual consumers who desire them and can afford to pay for them.

a. Retail services - provide goods for sale to consumers.

b. Personal services — provide services for the well-being and personal improvement of individual consumers.

2. Business Services

a. Producer services —

services to help people

conduct other business.

b. Transportation and

similar services —

businesses that diffuse

and distribute services.

Producer Services cluster in the center because of

accessibility.

3. Public Services

provide security

and protection for

citizens and

businesses.

government

FR Define range (higher and lower order)

and threshold and give examples of both.

range: the maximum distance that consumers will

normally travel to obtain it.

High-order goods and services are those that are relatively costly, specialized and/or infrequently required. A 60 mile range is not unusual.

Examples?

Low-order goods and services are those that are relatively inexpensive and required at frequent intervals

Examples:

threshold: Minimum # of people

needed to support the service

Convenience Store

Supermarket

market area is the area

surrounding a business

from which the bulk of

its customers are drawn

Department Store

Clustered rural

settlements

Dispersed

Rural

Settlement

services are clustered in and have their origins in

settlements.

FR Define and describe the major

principles of Walter Christaller’s

central place theory.

central place: a settlement in

which certain types of goods

and services are available to

consumers.

Walter Christaller formulated the

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

What does Pomona have

that Walnut doesn’t?

larger

settlements

provide

services for a

larger number

of people who

are willing to

travel farther.

towns and cities

(central places) tend

to be arranged in

clear, orderly

hierarchies

Very small towns have general practitioners and

few to no specialists--larger towns have more

specialized doctors, and the largest towns have even

more specialized practitioners. This is a function of

threshold in particular, as a neurosurgeon would not

encounter enough cases if she established her

practice in a town of 1,000 people-perhaps one

would require surgery in a year! It's also a function

of range, though, as people are increasingly willing

to travel longer and longer distances for more

specialized services. You wouldn't fly halfway

across the country for a sinus infection, but you

probably would for a bone marrow transplant!

Under ideal circumstances (on flat plains,

with good transportation in every

direction),with hexagonal-shaped market

areas of different sizes arranged around

different-sized places

FR Draw a diagram to help illustrate the central place

theory.

Note: look at

the 4 different

size of market

areas

The Spanish Urban System

For each large central place many

smaller central places are located

within the larger place’s hinterland.

Iowa map

incorrect

rank-size rule: a

statistical regularity in

city-size distributions

of cities and regions.

The relationship is such that the nth largest city in a

country or region is 1/n the size of the largest city in

that country or region.

The absence of the rank-size distribution in a less

developed country indicates that there is not enough

wealth in the society to pay for a full variety of

services.

Primate city: population of the largest city in

an urban system is disproportionately large

Examples?

Primacy is not simply a matter of sheer

size.

Some of the largest metropolitan areas in

the world are not primate.

For example:

Found in both the core and the periphery

• Here is a summary of CMSA/MSAs for April 1, 2000 (with percent change since 1990)

• 1 New York--Northern New Jersey--Long Island, NY--NJ--CT--PA CMSA 21,199,865 8.4%

• 2 Los Angeles--Riverside--Orange County, CA CMSA 16,373,645 12.7%

• 3 Chicago--Gary--Kenosha, IL--IN--WI CMSA 9,157,540 11.1% 4 Washington--Baltimore, DC--MD--VA--WV CMSA 7,608,070 13.1% 5 San Francisco--Oakland--San Jose, CA CMSA 7,039,362 12.6% 6 Philadelphia--Wilmington--Atlantic City, PA--NJ--DE--MD CMSA 6,188,463 5.0% 7 Boston--Worcester--Lawrence, MA--NH--ME--CT CMSA 5,819,100 6.7% 8 Detroit--Ann Arbor--Flint, MI CMSA 5,456,428 5.2% 9 Dallas--Fort Worth, TX CMSA 5,221,801 29.3% 10 Houston--Galveston--Brazoria, TX CMSA 4,669,571 25.2%

Primacy in peripheral countries is usually a

consequence of early roles as gateway cities.

In core countries it is usually a consequence of roles

as imperial capitals

A forward capital is a city or location chosen because

it has one or more of the following characteristics:

(1) it is centrally located, either geographically or

culturally

(2) it is located on some sort of settlement frontier or

designed to attract people to an area or region

(3) it is located away from centers of colonial, cultural,

or economic power

(4) it is oriented away from one culture, group, or idea

and toward another

Some examples:

• Some examples: Abuja/ Nigeria,

Brasília/Brazil,

Canberra/Australia, Helsinki/

Finland, Islamabad/Pakistan, New

Delhi/India, Ottawa/Canada,

Washington/United States •

FR Define and explain what makes a city a world city?

The sphere of influence of world cities

world cities: cities in which a

disproportionate part of the most important

business is conducted.

world cities possess several functional

characteristics:

• business services international in

scope

• corporate headquarters

• internationally influential media

organizations

• centers of culture

• a vacation destination

• Targets of Terrorism

A city like New York, for example, attracts transnational

corporations because it is a center of culture and

communications. It attracts specialized business services

because it is a center of corporate headquarters and of

global markets; and so on.

Dominate World Cities

London, New York, and Tokyo.

Major world cities

Chicago, Los Angeles, and Washington

Brussels, Frankfurt, Paris, and Zurich in Western Europe.

Only two of the nine major world cities are less developed regions.

Sao Paulo (Brazil) and Singapore

Secondary World Cities: contain the headquarters of many

large corporations, important educational, medical and public

institutions

North America: Houston, Miami, San Francisco, and Toronto

Asia: Bangkok, Bombay, Hong Kong, Manila, Osaka, Seoul,

and Taipei

Western Europe: Berlin, Madrid, Milan, Rotterdam, and

Vienna

Latin America: Buenos Aires, Caracas, Mexico City, and Rio

de Janeiro

Africa: Johannesburg

South Pacific: Sydney

There is a hierarchy of cities each with its own function and periphery

Why do services cluster downtown?

Accessibility is the

key word.

Central business district (CBD): the central

nucleus of commercial land uses in a city.

Distinctive characteristics of the central city follow

from the high land cost.

1. land is used more intensively in the center than

elsewhere in the city

Height decreases as

land values do

2. some activities are excluded from the center

because of the high cost of space

3 types of retail

services in the

CBD

1. high threshold

2. high range

3. retail services serving

downtown workers

Recently, services,

especially retail, have

moved from the CBD

to suburban locations

• land costs are lower

• most of their

customers live there

Urban residents are now more likely

to shop in suburban malls a short

drive from their home.

Factories have moved to suburban locations in

part because of access to main highways.

Shopping Malls

Anchors: large department stores in malls.

The shopping mall, surrounded by suburbs,

is one of the most distinctive landscapes of

post-World War II life in North America.

Where is the largest mall

North America?

anchored by eight department

stores

employs 18,000 people

800 stores and services

100 restaurants

http://www.westedmall.com/info/fastfacts.html

West

Edmonton

Mall:

fantasylandhotel.com

Elsewhereness: artificial landscapes

created to temporarily escape the

ordinary

Disneyification

Other Examples?

Venetian Hotel >

< Paris Hotel

Las Vegas: Degenerative

Utopia

Malls: Landscapes of consumption,

landscape of leisure, or both??

The mall (Vegas, etc.) is a “pseudoplace” meant to

encourage one sort of activity—

shopping/gambling—by projecting the illusion that

something else besides spending money is actually

going on.

Mega malls are not merely for shopping

but Malls have become social centers

However, unlike the open-air

marketplaces of the past

shopping malls are private spaces, not public

spaces.

Militarized Space:

the increasing use

of space to set up

defenses against

elements

considered

undesirable TQ

• surveillance cameras

“Citizen Law Enforcement and Analysis” (CLEAR), in

Chicago, Illinois

• fortress architecture

• gated and guarded residential communities

• 'bum proof' benches (or lack of street

furniture)

• sprinkler systems