APHG Chapter 12 – Key Issue 3 – Flashcards

Cities that play an especially important role in global business services. Also called world cities.

law, banking, insurance, accounting, advertising... important to the economic system

1. Headquarters of large companies need to obtain information in a timely manner and be close to stock exchanges. 2. Lawyers, accountants, advertisers and other professions need to be close to the corporations to advise. 3. Banks, insurance need to be close to corporate clients.

alpha beta gamma

1. Economic - # of headquarters for multinational corporations - # of financial institutions and law firms 2. Political - headquarters for international organizations - capital of country 3. Cultural - presence of renowned cultural institutions, influential media outlets, sports facilities & educational institutions Infrastructural 4. Infrastructural - major international airport, health-care facilities, advanced communication system.

1. Immediate communication via telegraph/phone/computer replacing location proximity. 2. Railroad/car/plane - able to deliver/travel quickly.

1. Large size of global cities 2. Disproportionately larger # of wealthy people in global cities.

1. Offshore financial services. 2. Back-office functions.

1. Supportive laws - esp taxes, privacy 2. Weak regulations 3. Low-wage workers

1. Low taxes or tax-free status. 2. Privacy - evading disclosure, protecting assets

Cayman Islands. Hundreds of banks with assets > 1 trillion dollars.

Insurance claims processing, payroll management, transcription work and other routine clerical duties. Also includes centers for responding to billing inquiries related to credit cards, shipments, and claims, or technical inquiries related to installation, operation and repair.

1. Low wages yet better educated, more motivated employees. 2. Ability to speak English (India, Malaysia, Philippines - all with substantial # of workers with English language skills, a legacy of colonial rule).

Late/night hours due to time difference. Lack of transportation, less public transport at night.

Industries that sell their products or services primarily to consumers outside the settlement.

Industries that sell their products primarily to consumers in the community.

A community's unique collection of basic industries.

Compare % of community workers to national workers in a specific type of business. If % higher in community - then that type of business is a basic economic activity.

New basic industry attracts new workers and their families to the settlement. Then creates need for nonbasic industries and workers as well.

General - Chicago, Los Angeles, New York, San Francisco Computing - Boston, San Jose High-tech industry - Austin, Orlando Military support - Huntsville, Knoxville, Norfolk Management consulting - Wash DC

Entertainment - Atlantic City, Las Vegas, Reno Medical - Rochester MN (Mayo Clinic)

Steel initially but now health services more important.

Talented individuals gravitate towards cities that offer more cultural diversity.

# culture facilities per capita % of gay men "coolness" index (bars, nightlife, art galleries, age 20s)

% of people with college degrees % employed as scientists or engineers % employed as professionals or technicians

Because these individuals are responsible for promoting economic innovation. They are likely to start new businesses and infuse the local economy with fresh ideas.