Where do business services cluster?

12-4 (a)

I. Ancient World Cities

A) City-states (Athens/Rome) B) Medieval cities (Most in Asia NOT

Europe)

C) Early 1800’s largest city changed to…

London, England

II. Importance of Modern World Cities

A) Business Services B) Consumer Services C) Public Services

III. Levels of World Cities

A) 3 standouts – Any Guesses???

New York! (North America)

Tokyo, Japan (Asia)

London, England (W. Europe)

B) 4 levels of cities

1st level: World Cities (3 sublevels) 2nd level: Command/Control Centers

( Atlanta, Boston, etc.) 3rd level: Specialized Centers

(Pittsburgh – Steel Albany, NY – State Capital 4th level: Dependent Centers

(San Diego – Military,Fort Lauderdale – Resort &

Retirement)

New York London

TokyoChicago, Los Angeles, Washington, Brussels, Frankfurt, Paris, Zurich, Sao Paulo, Singapore

Houston, Miami, San Francisco, Toronto, Bangkok, Bombay, Hong Kong, Manila, Osaka, Seoul,, Taipei, Berlin, Madrid, Milan, Vienna, Rotterdam, Buenos Aires, Caracas, Mexico City, Rio de Janeiro, Johannesburg,Sydney

Where will the most “world” cities be located?

MDC’s or LDC’s

New York London

TokyoChicago, Los Angeles, Washington, Brussels, Frankfurt, Paris, Zurich, Sao Paulo, Singapore

Houston, Miami, San Francisco, Toronto, Bangkok, Bombay, Hong Kong, Manila, Osaka, Seoul, Taipei, Berlin, Madrid, Milan, Vienna, Rotterdam, Buenos Aires, Caracas, Mexico City, Rio de Janeiro, Johannesburg,Sydney

So, most world cities are found in MDC’s, why???

-International Division of Labor -Infrastructure -Technology -Agglomeration

What City??????

The Hague, Netherlands

IV. Business Services in LDC’s

A) Global Circulation of Capital*

B) Offshore Financial Services

1 – Usually Islands or Microstates 2 – Provide shelter from taxes and

privacy 3 – Source of income for small

countries

4 - Good Example:

The Cayman Islands (British Dependency/Colony)

C) Back Offices

1 – Examples – Processing Insurance Claims, Payroll Management, all types of clerical work and Call Centers

2 – Traditionally

Back Offices were located…

2 – Today, many Corporations “Outsource”

Definition: A decision by a corporation to turn over much of the responsibility for production to independent suppliers.

Can be used in industry but also in some SERVICES! Why?

TECHNOLOGY!!!

3 – Some LDC’s attract back office outsourcing because

of: *Low Wages (10% of American Salaries)

AND

*Ability to Speak English - Which LDC countries would have this????

4 – In LDC’s back office jobs…

THE END!