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March 16, 2016 8:09 am  #1

Outline of Ch. 12

Chapter 12 – Services – Outline
I. Intro
            A. Most people in MDCs work in services, while on 10% of people in LDCs do
            B. Key definitions
1.  service – any activity that fulfills a human want or need in exchange for money to those that provide it.
2.  settlement – permanent collection of buildings where people reside, work and obtain services.
            C. Things to know about providing services
                        1. Always optimal to be near customers that want the service
                        2. Choosing the ideal location has to be very precise
                        3. People with means to buy the services is also important
                                    a. China and India have the most people but not the most services
                                    b. People can better afford services in MDCs
                        4. Services are becoming more global
                                    a. In America everyone has a McDonald’s
                                    b. Still every community has its own unique local services
II. KEY ISSUE 1: Where Did Services Originate?
            A. Types of Services
                        1. Consumer Services – made for individual consumers
                                    a. Retail and wholesale services
                                                (1) About 11% of jobs in U.S.
                                                (2) includes department stores, grocers, car sales, clothing
                                    b. Educational services (11%)
                                    c. Health Services (10%)
                                    d. Leisure and Hospitality Services
                        2. Business Services – to facilitate other businesses
                                    a. Financial Services (6%)
                                    b. Professional Services (13%)
                                    c. Transportation and similar services
                        3. Public Services
                                    a. purpose is to provide security and protection for citizens
                                    b. 16% of work force (9% w/o educators)
                                    c. there is some overlap between service sectors
                        4. Changes in Number of Employees
                                    a. Huge growth in services employees, with decline in other sectors
                                    b. professional services growing faster than finance and transportation
                                    c. health care industry on rise
                                    d. federal government shrinking some, but state and local growing
            B. Origin of Services
                        1. Early Consumer Services
                                    a. may have been a place to bury dead (spawning religion)
                                    b. allowed men to leave family in safe place while venturing further
                                    c. provided areas to manufacture tools and other products
                        2. Early Public Services
                                    a. government leaders
                                    b. cities became areas of defense
                                                (1) soldiers housed there
                                                (2) city walls prevalent until 14th century
                                                (3) key military sites like Pentagon still in cities
                        3. Early Business Service
                                    a. cities became a place to trade excess goods
                                    b. often city officials could regulate prices
            C. Services in Contemporary Rural Settlements
                        1. People naturally started to gather near fields that produced food
                        2. Clustered Rural Settlements
                                    a. village or settlement around a series of fields
                                    b. circular rural settlements
                                                (1) central open space surrounded by structures
                                                (2) Masai in Africa, German Gewandorf
                                    c. linear rural settlements
                                                (1) clustered along a road or river to facilitate communications
                                                (2) Exist in North America in areas settled by French
                                    d. colonial American clustered settlements
                                                (1) favored in New England
                                                (2) reasons for cluster
                                                            (a) near the center of land grant
                                                            (b) wanted to reinforce religious principles
                                                            (c) defense against Indians
                                                (3) South had a different style of cluster called plantation
                        3. Dispersed Rural Settlements
                                    a. In the U.S.
                                                (1) favored in the Middle Atlantic
                                                (2) people of M.A. saw themselves as individuals
                                                (3) Became style of Midwest when settled by M.A.
                                                (4) New England became more like that over the years
                                    b. Enclosure Movement
                                                (1) movement in Britain to consolidate into larger farms
                                                (2) provided greater agricultural efficiency
                                                (3) basically ended typical village life in England
III. KEYISSUE 2: Why are Consumer Services Distributed in a Regular Pattern?
            A. Central Place Theory
                        1. What is a central place?
a. market center for exchange of good and services by surrounding area people
b. centrally located
c. compete against other central places
                        2. central place theory explains a pattern of settlements to provide services
                                    a. First proposed by Walter Christaller
                                    b. Developed further by August Losch and Brian Berry
c. Most clearly applies in non heavy industry area not interrupted by physical features like the Great Plains
                        3. Market Area of a Service
                                    a. market area
                                      (1) Also called hinterland
                                      (2) the area around a service from which consumers are attracted
                                    b. people will go to whichever service area is closer
                                    c. areas cannot be drawn accurately with circles
                                                (1) circles create overlap which doesn’t exist
(2) circles also leave gaps, which is not accurate as people don’t go without services
                                    d. market areas are more accurately depicted with hexagons
                        4. Size of Market Area
a. In order to determine the size of a market, geographers need to determine the range and the threshold of a service
b. Range of a Service
            (1) the maximum distance people are willing to drive for a service
            (2) people are willing to drive further for some things than others
                        (a) everyday consumer items have short range
                        (b) big things like concerts and sporting events have longer
(3) it is the maximum distance most will travel, not the farthest distance that the most extreme person will travel
(4) people qualify how far the will go by the time it will take them to get there, not the actual distance
                                    c. Threshold of a Service
                                                (1) the minimum number of people needed to support a service
                                                (2) different products appeal to different people
(3) only willing to provide a service if customer base exceeds threshold
            B. Market-Area Analysis
                        1. Profitability of a Location
                                    a. Calculation using range and threshold to see if site will make money
                                    b. Only if they can make a profit will the build
                        2. Optimal Location Within a Market
                                    a. goal is to get it as close to as many people as possible
                                    b. Best location in a linear settlement
                                                (1) Want half the people on each side
                                                (2) gravity model
                                                (a) physics principle that applies
(b) relates directly to number of people in area and inversely to the distance the must travel
(c) more simply, the more people, the better the location, the further they have to travel, the worse the location
                                    c. Best location in a nonlinear settlement
                                                (1) still use the gravity model
                                                (2) follow seven steps
                                                            (a) identify a possible site for new service
                                                            (b) within range, identify where users live
                                                            (c) measure distance between site and each user
                                                            (d) divide each user by distance to potential site
                                                            (e) add all the results
                                                            (f) select another potential site and repeat steps 2-6
                                                            (h) compare the final results of all possible sites
                                                (3) the best location is the site with the highest score
            C. Hierarchy of Services and Settlements
                        1. Small settlements support less services
                        2. Larger settlements attract larger ranges of services
                        3. Neighborhoods in large settlements may still have mom and pop type stores
                        4. People will spend as little time as possible obtaining services
                        5. Nesting of Services and Settlements
                                    a. hamlets, villages, towns and cities each have their own size hexagons
b. These hexagons will overlap, because cities distance themselves from
each other without regard to the smaller units
                        6. Periodic markets
                                    a. sometimes lower end services are provided occasionally
                                    b. this occurs when communities can’t provide full-time services
                                    c. often requires the vendors to be fairly mobile
                                    d. the frequency of periodic markets varies by culture
            D. Rank-Size Distribution of Settlements
                        1. rank-size rule
                             a. The nth largest settlement is 1/n the size of the largest city
                                    b. basically the second largest is ½ as big as the largest and so forth
c. If settlements don’t graph as a straight line, then they don’t have a rank-size distribution
                        2. primate city rule
a. when the largest city has more than twice as many people as the second largest city
b. The largest city in this model is called a primate city
3. The existence of a rank-size distribution indicates a society wealthy enough to provide services for its people on all levels
4. Gaps in the rank-size distribution indicates something missing in a country
5. Often gaps are seen in LDCs
IV. KEY ISSUE 3: Why Do Business Services Locate in Large Settlements
            A. World Cities
                        1. Ancient World Cities
                                    a. started around four heaths
                                                (1) Fertile Crescent in Mesopotamia
                                                (2) Egypt
                                                (3) China
                                                (4) Indus River Valley
                                    b. Earliest urban settlements
                                                (1) Ur in Mesopotamia
                                                (2) Titris Hoyuk in Turkey
                                                            (a) nothing built on top of it so easy to examine
                                                            (b) suggests early settlements were very organized
                                    c. Ancient Athens
                                                (1) Greeks organized in city-states
(2) built new cities to fill in gaps in trading routes or to open new markets
(3) started pattern of cities being for cultural activities
                                    d. Ancient Rome
                                                (1) center of the Roman Empire which was massive
                                                (2) built extensive road and aqueduct network
                                                (3) collapse of Rome threw Western Europe into chaos
(a) by then Rome was only second most important Roman city
(b) Only Western Europe experienced a Dark Ages
                        2. Medieval World Cities
                                    a. European feudalism
                                                (1) serfs worked for lords in exchange for protection
                                                (2) lords got financial benefit, but had to protect serfs
                                    b. When serfs escaped feudalism they started trade cities
                                                (1) grew into much bigger cities
                                                (2) usually surrounded by walls
                                                (3) during most of this period European cities were insignificant
                                                            (a) big exception Constantinople
                                                            (b) all other major cities were in Asia
                        3. Modern World Cities
                                    a. Business services in World Cities
                                                (1) began to cluster in cities during industrial revolution
                                                (2) now represent the financial center of the world
                                                            (a) major stock exchanges are in world cities
                                                            (b) lawyers, accountants and other professionals are there
                                                            (c) transportation services now center there
                                    b. Consumer services in World Cities
                                                (1) More wealthy people live in large cities
                                                (2) This leads to a greater number of large shops
                                    c. Public services in World Cities
                                                (1) Most world cities are capitals and the seat of political power
(2) Even though New York isn’t the capital, the U.N. is there and a major stock exchange
            B. Hierarchy of Business Services
                        1. Four levels of cities
                        2. World cities are highest level
                                    a. Three are greater than the others
                                                (1) New York
                                                (2) London
                                                (3) Tokyo
                                    b. This is based on stock exchanges mostly
                                    c. Second tier
                                                (1) Washington D.C.
                                                (2) Chicago
                                                (3) Los Angeles
                                                (4) Brussels, Belgium
                                                (5) Frankfurt, Germany
                                                (6) Paris, France
                                                (7) Zurich, Switzerland
                                                (8) Sao Paolo, Brazil
                                                (9) Singapore
                                    c. There is a third tier, but since this switches constantly, not listing them
                        3. Command and Control Centers
                                    a. Cities that contain the headquarters of many large corporations
                                    b. There are two levels of these, regional and sub-regional
                        4. Specialized Produces-Service Centers
                                    a. These are more highly specialized services
                                    b. Research and development of cars in Detroit for example
                        5. Dependent Centers
                                    a. resort, retirement and residential centers
                                    b. manufacturing centers
                                    c. industrial and military centers
                                    d. mining and industrial centers
            C. Economic Base of Settlements
                        1. This is a combination of basic industries and nonbasic industries
                        2. Basic industries defines a community’s economic base
3. Basic industries (mining, manufacturing, construction, retail, wholesale, finance, transportation) attract nonbasic industries (supermarkets, restaurants, laundromats), but it doesn’t work in reverse
4. You can see which industries are essential to a community by comparing the percentage of a community’s workers employed in a certain industry to the national average
5. Specialization of cities in different services
            a. originally basic industries referred to manufacturing
            b. now it also means some business services
c. Northeast is transforming itself from manufacturing area to business services area
                        6. Business Services in LDCs
                                    a. Offshore financial services
(1) Many countries specialize in helping rich people in MDCs hide their money
            (a) Some hide from taxes
            (b) Some of the money may be obtained illegally
(2) Laws in these countries can help with that
(a) Illegal in Cayman islands to talk about things learned at work
(b) Makes it exceptionally hard to find money in banks there
                                    b. Back Offices
                                                (1) This is the back end of sales, like billing and credit inquiries
                                                (2) Rising cost inside cities make it easier to have elsewhere
                                                (3) Seen as a good job in LDC
                                                            (a) paid less than in MDC, but far more than average LDC
                                                            (b) This means getting better workers in many cases
                                                            (c) Tend to be in countries with history of English
V. Key Issue 4: Why Do Services Cluster Downtown?
            A. Central Business District
                        1. Compact area, usually in one of the oldest sections of town
2. Contains less than 1% of the land area but a large percentage of the shops, offices and government buildings
3. Retail Services in the CBD
            a. Retail Services with a high threshold
            b. Retail Services with a high range
            c. Retail Services serving downtown workers
            d. The first two groups have largely migrated to the suburbs
4. Business Services
            a. Many remain that deal in face-to-face contact
            b. Also useful for getting high-level and low-level employees in one place
5. High Land Costs in the CBD
            a. The land rates go up quickly due to supply and demand
            b. Tokyo is the most expensive
                        (1) Japan has extremely limited space
(2) The space covered by one page of the textbook would cost $10,000 in the Tokyo CBD
                                    c. Intensive Land Use
                                                (1) Must build up and down
                                                (2) Wires run underground
                                    d. Skyscrapers
                                                (1) First built in Chicago in the 1880s
                                                (2) Can block light and air flow
(3) Washington D.C. doesn’t have them because no building can be higher than the capitol
                        6. Activities excluded from the CBD
                                    a. Declining manufacturing in the CBD
                                                (1) Factories prefer to spread out on ring roads
                                                (2) Old sections of town have been reworked
                                    b. Lack of residents in CBDs
                        7. European CBDs
                                    a. Have to deal with street built before cars
                                    b. Try to preserve their heritage
            B. Suburbanization of Businesses
                        1. Suburbanization of Retailing
                                    a. Have to go where people live
b. Since residents and shops are zoned separate, there is a move toward malls over corner shops
                        2. Suburbanization of factories and offices
                                    a. Factories want more space
                                    b. If an office doesn’t require face to face contact, no reason to be in CBD


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