chapter 12: services. in north america, ¾ of employees work in the service sector. consumer...

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Chapter 12: Services

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Chapter 12: Services

Chapter 12: Services

In North America, ¾ of employees work in the service sector.• Consumer services: provide services

to individual consumers and include retail services and personal services

• Retail services include about 11% of all jobs in the US and provide goods for sale to consumers. – Other consumer services include:

education services, health services and leisure and hospitality services.

Consumer Services

Business Services

• Helps other businesses.

• They diffuse and distribute services

• Include:– Financial

services– Professional

services– Transportation– Communication

– Utilities services

Business Services

Public Services

Includes governmental services at various levels that provide security and protection for citizens and businesses.

Land Use

A large percentage of the world’s population still practiceAgriculture and live in rural settlements.

Clustered Rural Settlements

Families live close to one another and fields surround the houses and farms buildings.

Dispersed Rural Settlements

Farmers live on individual farms and are more isolated from their neighbors.

These are associated with more recent agricultural settlements in the developed world.

Rural Enclosure Movement

Accompanied the Agricultural Revolution in Britain and is a good example of dispersed rural settlements.

Central Place TheoryCentral Place: A settlement whose livelihood depends on the sale of goods and services to people in the surrounding area

Examines the relationship between settlements of different sizes.

Especially their ability to provide various goods and services.

Larger market areas, based in larger settlements, are few in number and farther apart from each other than smaller market areas and settlements.

The theory consists of two basic concepts:1) Threshold -- the minimum market needed to bring a firm or city selling goods and services into existence and to keep it in business2) Range -- the average maximum distance people will travel to purchase goods and services

3) The Internet = X Factor. Not necessary to have customers close by.

Central Place Theory

Services will have a market area or hinterland

The Gravity Model

Predicts that the best location for a service is directly related to the number of people in the area

And, inversely related to the distance that people must travel for it

A place with more people will have more potential customers

People who are further away from a service will be less likely to use it

Rank Size Rule

• In many MDC’s there is a hierarchy of settlements from largest to smallest

• Rank size rule= a country’s nth largest settlement will be 1/nth the population of the largest settlement

• So the second largest city would be half the size of the largest– USA fits this (sort of): NYC population = 8

million, LA = 4 million, Chicago = 2 million

Primate City Rule

Many LDC’s as well as some European countries (MDCs) follow the primate city rule

A primate city is much larger and more important than any other city in the country

Buenos Aires, Argentina and Copenhagen Denmark are examples of these

Copenhagen has 1 million inhabitants, but the second largest city (Arhus) has only 200,000.

Example: UK. London has 8 million, but Birmingham (second largest) has only 2 million

Other examples: Rio, Lima, Mexico CityProblems with this in LDCs??

Copenhagen, Denmark

Buenos Aires, Argentina

Modern World Cities

• New York, London, Tokyo – A high percentage of the world’s business is

transacted and political power is concentrated.

• Centers business services• Especially financial services• Consumer services with large market areas• Leisure and cultural centers—a disproportional

number of wealthy people live in World Cities• Centers of national and international power

(Public Services)

United Nations in NYC

NATO and the headquarters of the EU is in Brussels

Command and Control Headquarters

• Second level of cities• Contain the headquarters of large

corporations• And, tied to a certain industry• Regional centers

– Atlanta– Baltimore– Philadelphia

Specialized producer-service centers (third level of cities)

• Have management, research and development activities associated with specific industries.

• Detroit is a specialized producer-service center specializing in motor vehicles.

Dependent Centers

• Depend on decisions made in world cities for their economic well-being

• They provide relatively unskilled jobs

• San Diego is an industrial and military dependent center

Basic Industries

• Are exported mainly to consumers outside a settlement and constitute that community’s economic base.

• These industries employ a large percentage of a community’s workforce.

• Nonbasic industries are usually consumed within that community Example: supermarket

• Basic industries are vital to the economic health of a settlement

Post Industrial Society

• The concept of basic industries originally referred to the secondary sector of an economy, such as manufacturing.

• But—in a post industrial society such as the US, they are now more likely to be in the service sector of the economy.

CBD

• Central Business District = CBD• The center of a city where services

have traditionally clustered• These types of retail services have

concentrated in the center because they require accessibility– These include services with a high

threshold• A large department store is a

high threshold service

High Range

• A retail store with a high range are specialized stores that are patronized less frequently

• Many high Threshold/high Range stores are moving to the suburbs

• Services that cater to people who work and/or live in the CBD are actually expanding

• Business services remain a part of the CBD as well– Banking– Advertising

Shopping in Baltimore’s Inner Harbor!

Built Environment and Social Space

• Land costs in CBD are high because of competition for accessibility

• Land use is more intensive in CBD• Built character more vertical• Infrastructure runs underground• Skyscrapers give the central city a

distinctive feature• Washington DC is the only large US

CBD that does not have a skyscraper..why?

No building is allowed to be higher than the U.S. Capitol dome!

Only two more chapters to listen to….

I’m Mrs. Walsh and I teach AP HUG!