Transcript Chapter 12
Chapter 12 Service and Settlements Service/Settlement Introduction • Call centers are some of the fastest growing services in global economy. • MDC tertiary sector- service any activity that fulfills a human want or need and returns $ to those who provide it • Services are located in settlements– permanent collections of buildings where people reside, work, obtain services – Under 1% of the earths surface are settlements; important because people rarely live in isolation 1 locational factor is important for geographers- PROXIMITY TO MARKET. Industry- site/situation factors Service- customers! “location, location, location” Where are services located? …Outsourcing • http://www.youtube.com/watch?v=0G_p6oO 8yAw&app=desktop 3 types of service • Customer – Provide services to individual customers who desire them and can afford to pay for them – Retail/wholesale, education, health/social, leisure/hospitality * ½ all jobs in USA are consumer services (ILP income search) • Business – Facilitate the activities of other businesses – Professional (law accounting architecture) – Financial – Transportation/information *1/4 all jobs in the USA are business service • Public – Provide security and protection for citizens and businesses Checkpoint! • Which sectors of the economy do your family members work in? • If they are in the service sector, in which types of services are those jobs in? The rise and fall of service… • Impacted most by 2008 recession • Employment – 1972-2010 USA all growth in the services sector – Primary/secondary sectors activities decline – Business service grew, slow in finance/transportation due to development and improved efficiency (i.e. less ppl to answer phones) – Consumer- rapid in healthcare/education/entertainment – Retail steady- more stores but not as many employees needed • Recession – Service sector was the trigger 2008! – Real estate prices rise- sell higher quickly “flip” – High risk loans for mortgages – Investors bought/sold risky assets expecting value to continue to rise – Reduce/eliminated govt regulations of financial institutes – Unwillingness financial institutes to loan once recession started *rapidly affected every region of the world but varied based on region/locality • Result: decline GNI 1st time since Great Depression Checkpoint! • What are the 3 types of services? • The fastest growing consumer service is… • T/F The fastest growing business service is professional. • Consumer, business, public • Health • True Where are Consumer Services Distributed? • Central Place Theory- helps explain how the most profitable locations can be identified (location= profitable Walter Christaller 1930s) • Market area – Area surrounding a service from which customs are attracted – Nodal region- core- where characteristics are most intense – Periphery- may get products from another node – USA Hinterlands- surrounding largest urban settlements *Google: Naturally occurring hexagons” Why are human economic activities created in hexagonal patterns? • Range – Maximum distance people are willing to travel to use a service (everyday 3 miles; other 60+ miles) – Ppl often answer in time rather than in distance (vary with road conditions) – Threshold: minimum # ppl to support the service (census data) must know cliental- ex. Movies- young mall 50,000 ppl+ Different size settlements • Small market area, small threshold, short range • Nesting of services/settlements - central place hexagons unless there is a physical barrier (hamlet, village, town, city) • Rank/size distributioncountries nth largest settlement 1/n the population of the largest settlement • In plain english…2nd largest settlement is ½ largest size…forms a straight line; otherwise not rank/size rule • Google “Most populous cities in Peru.” Do they follow the rank/size rule? • Primate City rule- largest settlements more than twice as many ppl as second ranking settlement • Primate city- largest city • Ex. Mexico- Mexico city 5x larger Guadalajaranot enough wealth in society to pay for full variety of services…so…travel long distances to reach urban area (LDC) • Rank/Size rule better in MDC Find the optimal location for service • Central place theory tells where to open/expand facility or in economic downturn where to close • “location, location, location” proximity to customers • Best location for factory- region of world • Best location service provider= corner vs. another corner same location • Location profitability – Range- survey…willing to travel? – Dept store- 250,000 ppl 15 minute radius – Justify location; if competition nearby need a larger threshold * GIS used to figure out…1 layer characteristics of people, average income, trade area, etc. Gravity model • predicts optimal location of a service that s directly related to the distance ppl must travel to access it – Consumer behavior – More ppl = more consumer possibility – Close you are; more likely you are to visit Periodic Markets • Collection of individual vendors who come together to offer goods/services in a location on specific days • Sparse populations, low incomes, purchasing power is low because there are no full time shops Muslim countries 1x/week No fridaysreligious rest Rural China- 3 city 10 day cycle- lunar month no work on the 10th day Korea- 2-15 day market cycles- lunar month Africa- 3- 7 day cycles varied by ethnicity Checkpoint • Central Place Theory helps determine the most profitable location for a consumer service. • A central place is surrounded by a market area that has a range and threshold. • Market areas of varying sites nest and overlap • Regular patterns of settlements that provide consumer services can be observed, especially in developed countries Business Services Distribution • Hierarchy of Business services • “global cities” information and capital (banking, law, insurance) – HQ of large corporations and stock exchanges in G. C. – Ad agencies, lawyers, accountants for HQ – Banks • Alpha • Beta • Gamma Level of classifications Factors for classifications Economic- HQ multinational Political- International/Heads of states Cultural- media, sports, educational institutes infrastructure – airport, healthcare, communication Global Cities cont. • Modern technology- allowed for decentralized manufacturing; transportation/communication reinforces global cities in the world economy: busy harbors/airports @ rail/highway junctions • Consumer/Public Services in Global Cities – High % wealth live in global cities due to luxury/specialized products – Entertainment and museums/libraries – Centers of National/International political power – National capitals offices for govt, mansions, etc. – New York home of the United Nations – Brussels- Most important center for EU Business services • Two types of business services in LDC’s are offshore and back office. – Supportive laws – Weak regulations – Low wage workers Offshore financial services • Islands/microstates • Taxes- tax free status – USA loses $70billion in taxes offshore • Privacy- evade disclosure in home country, protect assets from lawsuit/divorce/creditors; short statute of limitations • IMF, UN, Tax Justice Institute (look at figure) • Cayman Islands- British colony near Cuba $1trillion legally based • To get at the $ lawsuits need to be filed in offshore centers-difficult Business Process Outsourcing (BPO) • “back office” like insurance claims, payroll, transcription, clearical activities, billing/technical • Traditionally this was done “in house” with close supervision and rapid turn around; raising rents + modern communication= less spatial proximity – Low wages- 1/10th MDC wage – attracts educated/motivated LDC employees – English abilities- India, Malaysia, Philippines (British/ American colonies)- late night/American day. Entertainment rooms provided- rely on public transportation come- early stay late– If it is 3pm today in Louisville, what time is it in India? Economic base settlements • Basic industries – Settlements distinctive economic structure derives from exports to consumer outside settlement • Non basic industries – Enterprises whose customers live in the same community; consumer services • Economic base – Community's collection of basic industries (exports) important because exporting brings $ to local economy stimulating non basic for settlement – New workers, families for new industries, non basic supermarket, laundry, restaurants to settlement. – Basic drives non basic Calculating basic vs. non basic industries • % of workers in an industry compared to the national level • If higher % in the local community basic economic activity Settlements classified by basic activity- manufacturing Post industrial society- MDC basic activity is business/consumer/public service S/W growing rapidly, but N/E expanded business services more rapidly ex. Cleveland/Pittsburg- steel to hospitals Distribution Talent • Individuals with talent gravitate toward cities with more cultural diversity. • They promote economic innovation so important to attract Checkpoint! • T/F Business services cluster in global cities? • Developing countries provide two services for MDC. What are they? Clustered vs. Dispersed rural settlement • ½ ppl in the world live rural • Clustered rural settlements are agriculturally based communities in which families live in close proximity w/fields surrounding • ½ ppl live in urban settlements • Dispersed rural settlements- farmers living on individual farms isolated from neighbors rather than along side other farmers in settlements Clustered • • Homes, barns, tool sheds, church, school, shops Hamlet or village concept • • • • Allotted strips of land (shortage) Own/rent Collectively owned by “lord” Farmers own/responsible to fragmented parcels- live in clusters • As the population grows 2 options 1) Circular- central open space surrounded by structures (colonial America) 2) Linear- building clustered roads, river, communication, river access (Quebec) How does a cluster settlement contribute to regional dialect of English from Chapter 5? Dispersed • Immigration brings heterogeneous groups • Bought or given land- plentiful and cheap • Natural increase/net in migration • Enclosure movement- 17501850 England – Individual strips- single farms in some cases govt forced ppl to give up land – Disadvantages of strips- time traveled + more roads (restricted planting) – + agricultural efficiency – Displaced farmers go to urban settlements so village centers were kept or destroyed based on centrality of new farms. Services in Early Settlements • Nomad – Von Thunen (city with surrounding) – permanent settlement • Early consumer services- bury the dead, priests, builders • 5,000 yrs ago recorded history- settlements easier on males because “home + hearth” mentality • Manufacturing tools, clothing, shelters, containers, fuel-> specialization of jobs ex. blacksmiths • Early public service- protection, religious activities, walls • Early business services- food- hunt/gather – extra food for hard times turns into transportation, everyone has a different resource based on environment so settlements -> warehouse centers>trade, terms of transactions, fair price, records, currency, etc. Settlements discover plants-> agriculture…plant seeds, raise animals Checkpoint! • Summarize the types of services in early settlements Urbanization • Rural settlements existed 5,000 years ago • In 1800 3% Earths pop lived urban; today ½ • Urban origins-> Mesopotamia->fertile crescent of SW Asia and diffused Egypt, China, S. Asia (4 hearths) • Prehistoric urban- fertile crescent (present day Iraq), SW Asia, Africa Ancient Urbanization • 2500 BC E Mediterranean (Crete, Turkey, Greece) trade centers provided government and military for surrounding hinterland. • City- states- independent self governing communities that included settlement and nearby countryside. – Athens- largest city-state ancient Greece- culture, philosophy, public service, consumer service- activities not found in smaller settlements – Roman empire encouraged urban settlement “all roads lead to Rome” • 5th century fall of Rome • Urban settlement dies as self-sufficiency model through fragmented rulers • Europe’s culture was preserved by monasteries/isolated rural areas Medieval Urban • Europe’s urban revival happened in the 11th century with feudal lords establishing urban settlements. • Benefit – Lords get army without paying full time “standing army” – Residents freedom from rural serfdom (farmed lords land, but only kept small portion of output (sharecropping)) Surplus from the countryside brought into the city for sale/exchange; markets expand trade with other free cities Palaces, churches, prominent buildings arranged around central market square (tallest/elaborate church) usually walled city which lacked space for construction. • Modern tourists appreciate churches, but lack understanding of densely built medieval town. Post Roman Empire Collapse Largest urban settlements in China Industrial revolution- London largest NY in the 20th century 21st Tokyo Dimensions of Urbanization process by which the population of urban settlements grow • Number of people living in urban areas • MDC higher % • LDC more # large urban settlements • 44/50 largest urban settlements in LDCs Factors: Migration w/w out job High natural increase rates • % of ppl living in urban areas • 2008 urban population exceeded rural settlement pop except in Latin America (urban % = MDC urban %) Cause: industrial revolution + development of services Urban vs. Rural 1930s Lewis Worth said urban dweller is different today…city = permanent settlement with large size Urban rural Size Know small % ppl- rolesboss, etc. Relationships are contractual Know neighbors, related? “look out for everyone” High density Specialization of role Social groups compete for same territory Social heterogeneity Freedom, tolerate diversity Lonely/isolated Restricted- scored for bad behavior *Worth’s theory valid for LDC’s. All but 1% workers in MDC hold “urban” jobs Television, car, phoneequalizer Checkpoint! • Developed countries have higher ______ of urban residents. • T/F Developing countries have most of the very large cities. • T/F Few humans lived in urban settlements until the 19th century • Settlements are either _____ or _______. • T/F Rural settlements, which specialize in agricultural services, may be clustered or dispersed