Services Chapter 12 Services activity performed that fulfills

Services Chapter 12

Services: activity performed that fulfills a human want or need in exchange for money Usually a link b/t services and settlements Why are services clustered in settlements? Optimal location may be a specific place “location, location” Services must also reflect distribution of people Not the only factor b/c areas w/most population would have most svcs People in MDCs can afford to purchase services so most are located there Globalization of services-increasingly uniform How is local diversity preserved?

Where Did Services Originate? Key Issue #1

Types of services Consumer Services Two types: Business Services Purpose: to facilitate other businesses Two types: Retail service (about ¼ all consumer svcs jobs) Personal service (about 1/5 all consumer svcs jobs) Producer services: help people conduct business Transportation and similar services: diffuse and distribute services ½ transportation; other ½ information services Public Services Provide security and protection for citizens and businesses

Types of Services cont. These distinctions are not absolute-why? Why do geographers find them useful? How have the number of employees changed?

Origin of Services Centered around settlemetns How did early services evolve into present day services? Provide examples. Settlements at the core of services-Why?

Services in Rural Settlements Clustered vs. dispersed settlements Clustered settlements Discuss a typical clustered settlement. Circular Rural settlements Linear Rural Settlements Open space surrounded by structures (The German Gewandorf) Model von Thuen used in his studies Structures are clustered along a road, river, etc. to facilitate communication long-lot; seigneurial-be able to describe How are colonial American settlements clustered?

Services in Rural Settlements cont. Dispersed Rural Settlements Middle Atlantic area Mainly b/c people that settled here came as individuals rather than as a cohesive group As these settlers moved west, pattern of settlement followed Dispersed settlement began to replace clustered settlements- Why? Enclosure movement What is this movement? Where did it occur? Why did it occur? What was the effect of this movement?

Why Are Consumer Services Distributed in a Regular Pattern? Key Issue #2

Central Place Theory Where are central places located? Why? Central place theory explains how svcs are distributed and why there is a regular pattern of settlement First proposed by Walter Christaller Attempted to develop a model to predict how and where central places in cities would be spatially and functionally distributed

Central Place Theory cont. Set of assumptions: Surface of the area would be flat and have no physical barriers Soil fertility would be uniform Population and purchasing power evenly distributed Uniform transportation which would allow for direct travel from each settlement to the other Goods and services could be sold in all directions out to a certain distance Calculated the ideal model and then compared it to the real world In cities-central places would be nested, so the largest central place would provide services to smaller places Smaller places would provide services to even smaller places

Central Place Theory cont. Christaller postulated: cites would be regularly spaced w/central places where the same product was sold at the same price was a standard distance apart Each city has a complementary region in which they have a monopoly on the sale of certain goods Market Area of a Service Market area/hinterland How is a market area established? Christaller chose hexagons-Why?

Central Place Theory cont. Size of Market Area To determine, need info about its range and threshold Range of Service How far you are willing to go for a service Determined by observe consumer behavior Threshold of Service Minimum number of people required to support the service (generate a profit) How potential consumers are counted depends on the product

Central Place Theory cont. Central Places Today Geographer Larry Ford central place theory still has a place today Sunbelt phenomenon-movement of millions of Americans from North and Northeast to South and southwest and vice versa Result of government economic and social policies Some cities would respond by increasing services while others would not

Market-Area Analysis Used to determine if a market’s location will be profitable Profitability of a Location Calculate the range and threshold Optimal Location Within a Market Where in the market should the service be located to maximize profit? Linear Nonlinear Settlement

Hierarchy of Services and Settlements Small settlements are limited to consumer services w/small thresholds b/c they do not have the people to support a lot of services Larger settlements can support both Yellow pages of a large city vs. that of a small city Why travel when you can get it right here?

Hierarchy of Settlements and Services cont. Nesting of Services and Settlements Central place theory-MDCs would be hexagons unless interrupted by physical boundaries Hamlets, villages, towns, cities Rank-Size Distribution of Settlements Ranking settlements based on largest to smallest population produces a regular pattern or hierarchy Rank-size rule When plotted, makes a fairly straight line What happens if it is not a straight line when plotted? Primate city rule; country’s largest city is called the primate city

Hierarchy of Settlements and Services cont. Rank-Size Distribution of Settlements cont. Followed by many LDCs How does rank-size distribution have an impact on the quality of life for its inhabitants? Periodic Markets Collection of individual venders who come together to offer goods and services in a location on specified days Mostly provided in LDCs or rural MDCs Mainly mobile Frequency varies by culture

Why Do Business Service Locate in Large Settlements? Key Issue #3

Ancient World Cities Originally people clustered in agricultural villages egalitarian society main activity: agriculture This changed as cities were formed people generated personal wealth began to trade over long distances formation of stratified classes engaged in a diversity of economic activities

Ancient World Cities cont. Agricultural surplus and social stratification enabled the formation of cities-Why? advances in technology 1. king or priest/king centralized political power 2. leadership class was formed to control the surplus and technology used to create it in turn, demanded labor to create agricultural surplus which would help him/her retain political power Leadership class controlled all of the society’s resources since everyone did not participate in farming, could focus on other pursuits such as philosophy and religion writing and recordkeeping arose from these activities

Ancient World Cities cont. Ancient Athens city-states showed urban settlements have been traditionally distinguished from rural settlements not only by public services but also by personal services Ancient Rome rise of Rome encouraged urbanization as Rome declined, so did urban settlements

Medieval World Cities renewed urban life as feudalism spawned urban settlements largest urban settlements served as power centers usually fortified by walls What were believed to be the 5 most populous cities in 900 A. D. ?

Modern World Cities Business Services in World Cities Consumer Services in World Cities clustering of businesses the result of the Industrial Revolution Explain. have a large number of consumer services due to the large and wealthy markets world cities are…more people can afford things there so they provide more retail/service opportunities for their wealthy customers Public Services in World Cities may be centers of national or international political power offices that do business with the gov’t are often located there New York, Brussels

Hierarchy of Business Services 4 levels of cities that play a role in business services World Cities Why are they closely integrated into the global economic system? London, New York, Tokyo Chicago, LA, Washington, Brussels, Frankfurt, Paris and Zurich largest city of their main area most important stock exchanges located there also included: Sao Paulo and Singapore where many major banks or other corporations may have their headquarters What cities make up the third tier?

Hierarchy of Business Services cont. Command Control Centers Specialized Producer-Service Centers second level of cities What types of services are located here? What are some command/control center cities? third level of cities offer more narrow and highly specialized variety of services What are some examples? Dependent Centers fourth-level cities unskilled jobs; their economic health depends on the decisions of the other cities What are the 4 subtypes?

Economic Base of Settlements basic industries vs. non basic industries-What is the difference? Why is a settlement’s economic base important? nonbasic industries will not result in the creation of new basic industries How can a community’s basic industries be identified? Settlements in the US are classified by type of basic activity –explain. Economic base of some settlements is in the secondary sector-explain.

Economic Base of Settlements cont. Specialization of Cities in Different Services Basic industries originally referred to manufacturing Those specializing in public services are dispersed all over the country-why? Distribution of Talent Those with talent are not uniformly dispersed Why do some cities have a larger number of talented individuals than others? Richard Florida-what did his research about talent determine?

Why Do Services Cluster Downtown? Key Issue #4

Central Business District (CBD) Consumer and business services located in CBDs because of their accessibility Retail Services in the CBD Retail Services w/High Threshold Accessible to a large number of people Rents here were usually highest Recently, most have disappeared for the suburbs Retail Services w/ High Range Very specialized shop; customers patronize it infrequently Prefer central locations Have also moved to suburban shopping malls How can they still survive in CBDs?

Central Business District (CBD) cont. Retail Services Serving Downtown Workers Cater to those who work in the downtown area Limited hours Many of these are expanding-Why? How have cities attempted to revitalize retailing in CBDs and old er neighborhoods? Producer Services Cluster in the center for accessibility Facilitates communication Helps to establish sense of trust Also allows businesses to employ people from all different neighborhoods Can find employees they need in a CBD

Central Business District (CBD) cont. High Land Costs in the CBD Accessibility produces competition for land As a result, extremely expensive 2 characteristics emerge as a result: Intensive Land Use Land is used more intensely at the center than elsewhere in the city Some activities are excluded form the center because it is so expensive “underground city” Use of more space above and below ground Skyscrapers Building up instead of out Vertical geography-explain.

Central Business District (CBD) cont. Activities Excluded from the CBD Manufacturing Requires too much space Suitable land usually located in the suburbs Lack of residents Most individuals cannot afford the rent in CBDs Where is this problem especially critical? What are the push/pull factors for leaving CBDs?

Suburbanization of Businesses Cheaper and it is where most customers are located Suburbanization of Retailing Why have downtown sales stagnated? Has resulted in businesses moving to the suburbs Suburbanization of Factories and Offices Why have they moved? Can pose a hardship for some employees-explain.