Key Issues

2. Key Issues • Where are consumer services distributed? • Where are business services distributed? • Where are the world’s urban centers located?

3. Three Types of Service-Sector Jobs • Consumer services (50% of all service jobs in U.S.) • Retail, Education, Health, Leisure • Business services (25% of all service jobs in U.S.) • Professional, Financial, Transportation • Public services (10% of all service jobs in U.S.) • Government, Security and Protection

4. Where Are Services Distributed? • Rising and Falling Service Employment • Service sector of the economy has seen nearly all of the growth in employment worldwide. • Service sector has also been most negatively impacted by the recession. • Change in Number of Employees • Within business services, jobs expanded most rapidly in professional services - engineering, management, and law. • Within consumer services, fastest increase has been in health care.

6. Changes in U.S. Employment

7. Key issue 2:where are consumer services distributed?

8. Where Are Consumer Services Distributed? • Market Area of a Service • A central place is a market center for the exchange of goods and services by people attracted from the surrounding area. • It is centrally located to maximize accessibility. • A market area, or hinterland, is the area surrounding a service from which customers are attracted. • Remember “nodal” or “functional” region!

9. Where Are Consumer Services Distributed? Christaller’s Central Place Theory - 1930s • Based on study of southern Germany • Larger towns or cities offer more consumer services and more specialized services • Helps identify the most profitable location for a consumer service

10. Where Are Consumer Services Distributed? Nesting of Services and Settlements: • Central place theory suggests that market areas across a developed country would be shaped as a series of hexagons of various sizes, unless interrupted by physical features. • Four different levels of market area exist: • Hamlet (smallest) • Village • Town • City (largest)

11. Christaller’s Central Place Theory

13. CENTRAL PLACE THEORY IN NORTH DAKOTA Central place theory helps explain the distribution of settlements of varying sizes in North Dakota. Larger settlements are fewer and farther apart, whereas smaller settlements are more numerous and closer together

14. Range and Threshold of a Market Area • The rangeof a serviceis the maximum distance people are willing to travel to use it. • People travel short distances for everyday services – for example, groceries and hair cuts • People travel greater distances for services offered exclusively in specific places – for example, concerts, professional sporting events, specialized medical care • The threshold of a service is the minimum number of people needed to support the service.

15. Hierarchy of Consumer Services Small settlements provide consumer services that have: • smaller thresholds • shorter ranges • smaller market areas • low-order goods like food and household items that are purchased often and can keep small businesses going

16. Larger settlements provide consumer services that have: • larger thresholds • longer ranges • larger market areas • high-order goods like cars and furniture that are purchased less frequently (businesses must locate in larger cities to survive)

17. Christaller’s Assumptions • No topographic barriers • Evenly dispersed rural population between urban areas • People have similar incomes • People will purchase goods and services at the location nearest to them • When demand is high, the good or service will be offered in close proximity to the population

18. Primate Cities • If no other city in a country even comes close to rivaling the largest city in terms of size or influence, the city is a primate city • Serves as the financial, political, and population center of a country • Often, but not always, the capital city • A primate city must be more than twice as populous as the next largest city (“disproportionately large”) • Not all countries have primate cities • Often found in less developed countries

19. Examples of Primate Cities • France: Paris (2.2 million); next is Marseilles with 800,000 • United Kingdom:London (6.9 million); next is Birmingham with 1 million • Mexico: Mexico City (9.8 million in the city; 16.6 million in the metropolitan area); next is Guadalajara with 1.7 million • Thailand:Bangkok (5.9 million); next is Nakhon Ratchasima with 278,000 • Bangkok has been called “the most primate city on earth” because it is 40 times larger than Nakhon Ratchasima

20. Countries without Primate Cities • India's most populous city is Mumbai (formerly Bombay) with 9.9 million; second is Delhi with 7 million, third is Kolkata (formerly Calcutta) with 4.4 million, and fourth is Chennai (formerly Madras) with 3.8 million. • With the New York City metropolitan area population at approximately 20.1 million, second ranked Los Angeles at 15.8 million, and even third ranked Chicago at 8.8 million, the United States lacks a primate city. • China, Canada, Australia, and Brazil are additional examples of non-primate-city countries.

21. Countries without a Primate City

22. Rank-Size Rule • Developed by G.K. Zipf in 1949 • Describes the pattern of urban area sizes in complex economies where urbanization is well-established, such as the U.S. • The nth largest city will be 1/n the size of the largest city • For example, the 2nd largest city will be ½ the size of the largest city • The 5th largest city will be 1/5 the size of the largest city • Often seen in more developed countries

24. Rank-size distribution in U.S. and Mexico The size of settlements follows the rank-size rule in the United States and the primate city rule in Mexico.

25. Where Are Consumer Services Distributed? Market Area Analysis • The gravity model predicts that the optimal location of a service is directly related to the number of people in the area and inversely related the distance people must travel to access it. • The best location will be the one that minimizes travel for all potential customers.

26. Gravity Model • Since larger places attract people, ideas, and commodities more than smaller places and places closer together have a greater attraction, the gravity model incorporates these two features.

27. Gravity Model • The gravitational bond between the New York and Los Angeles metropolitan areas is 52,394,823 • The bond between El Paso, Texas, and Tucson, Arizona, is 8,038,300 • The bond between New York and Los Angeles is greater than that of El Paso and Tucson, even though El Paso and Tucson are closer together!

28. Gravity Model • Usefulness of gravity model – to anticipate: • migration between cities (and we can expect that more people migrate between LA and NYC than between El Paso and Tucson) • the traffic between two places • the number of telephone calls between two places • the transportation of goods, mail, and other types of movement between places • The gravity model can also be used to compare the gravitational attraction between two continents, two countries, two states, two counties, or even two neighborhoods within the same city.

29. Key issue 3:where are business services distributed?

30. Where Are Business Services Distributed? • Hierarchy of Business Services • A handful of urban settlements are known as global cities(or world cities) that play an especially important role in global business • London and New York are the two dominant global cities (alpha ++)

31. Factors to Distinguish Global Cities • Economic: number of headquarters for multinational corporations, financial institutions, and law firms • Political: headquarters for international organizations and capital of countries • Cultural: presence of cultural institutions (museums, theaters), media outlets, sports facilities, and educational institutions • Infrastructure: major international airport, health care facilities, advanced communications systems

32. World Leaders – 2016 Global Cities Index • Business activity: New York • Human capital (diversity, education): New York • Information exchange: Paris • Cultural experience: London • Political engagement: Washington, D.C.

33. Global Cities Outlook rankings These cities are expected to dominate as the top global cities in the coming years: • San Francisco • New York • Boston • London • Houston • Atlanta • Stockholm • Amsterdam • Munich • Zurich

34. Global Cities Global cities are centers for the establishment of services in the global economy. London and New York, the two dominant global cities, are ranked as alpha++.

35. Global Cities in North America

36. Forward Capital • A symbolically relocated capital city usually for either economic or strategic reasons. • Sometimes used to integrate outlying parts of a country into the state. • Examples: • Nigeria: from Lagos to Abuja due to overcrowding • Brazil: from Rio de Janiero to Brasilia to promote settlement of the interior • Pakistan: from Karachi to Islamabad for better defense and climate • Myanmar: from Yangon to Naypyitaw possibly as a “vanity project” by the leader; more centrally located; Yangon had become too crowded

37. Key issue 4:Where are the world’s urban centers located?

38. Rural Settlements Clustered Rural Settlements • Typically include homes, barns, tool sheds, churches, schools, and shops • Called a hamlet or a village • New England colonists built clustered settlements because they wanted to live close together to reinforce cultural and religious values • Offered protection from Native Americans

39. Rural Settlements Clustered settlements are often arranged in one of two patterns: • Circular: open space surrounded by structures • Linear: clustered along a road or river; long, narrow strips extend behind buildings (French long-lot system)

41. Rural Settlements 3. Dispersed Rural Settlements • Middle Atlantic colonies were settled by a more heterogeneous group than New England – settled individually rather than as a group • Brought this land pattern to the Midwest as they settled • In Great Britain, the enclosure movement between 1750-1850 consolidated individually owned strips of land into larger farms • Converted clustered settlements to dispersed – no longer centered around village life • Many displaced famers moved to cities

44. Rural to Urban • May 23, 2007 - sometimes referred to as the start of the “Urban Millennium” - the day the world became more urban than rural • The global proportion of urban population rose from • 13% in 1900 • 29% in 1950 • 49% in 2005 • 54% today • By 2050 over 6 billion people, two thirds of humanity, will be living in towns and cities

46. How would you define a city?

47. Compare the following definitions of a city: • An agglomerated settlement whose inhabitants are primarily engaged in nonagricultural activities • A population cluster having a continuous built-up area with a population of at least 5,000 people What elements do the definitions share? How are they different?

48. Urbanization The process by which the population of urban settlements grows, known as urbanization, has two dimensions: • An increase in the number of people living in urban settlements. • Developing countries have 8 of the 10 most populous cities. Largest cities over time animation

49. World’s Most Populous Cities • Tokyo-Yokohama • Jakarta, Indonesia – 31.3 million • Delhi, India – 25.7 million  • Seoul-Inchon, South Korea – 23.6 million • Manila, Philippines – 22.9 million • Mumbai, India – 22.9 million • Karachi, Pakistan – 22.8 million • Shanghai, China – 22.7 million • New York City, USA – 20.7 million • Sao Paulo, Brazil – 20.6 million