AP Human Geography Chapter 12 Key issue 3 – Flashcards

Global cities are most closely integrated into the global economic system because they are at the center of the flow of information and capital. Business services including law, banking, insurance, accounting, and advertising, concentrate in disproportionately large numbers in global cities Headquarters of large corporations are clustered in global cities and shares of these corporations are bought and sold on stock exchanges located in the global cities. Executives of manufacturing firms meeting far from factories make your decisions concerning what to make how much to produce and what prices to charge. Support staff also far from factory accounts for the flow of money and the materials to and from the factories this work is done in offices in the global cities.lawyers and accountants all cluster towards major corporations and financial institutions.

Global cities usually offer the most public services. They typically offer plays concerts operas night clubs restaurants bars and professional sporting events. They contain the largest libraries museums in theaters. London presents more plays than the rest of the United Kingdom combined and New York nearly has more theaters and the rest of the United States combined. Leisure services of national significance are specially likely to clustering global cities in part because they require large thresholds and large ranges and in part because of the presence of wealthy patrons. Global cities maybe centers of national or international political power. Mr. national capitals and they contain mansions or palaces for the head of state imposing structures for the national legislature and courts and offices for the government agencies. Also clustered in global cities our offices for groups having business with the government such as representatives of foreign countries trade associations labor unions and professional organizations.

Global cities are divided into three levels I'll alpha beta and gamma. levels are further divided. a combination of economic political cultural and infrastructure factors are used to identify global cities and to choose its ranking Economic factors: include number of headquarters for multinational corporations, financial institutions, and law firms that influence the global economy Political: Hosting headquarters for international organizations and capitals of countries that play a leading role in international events Cultural factors: presence of renowned cultural institutions influential media outlets sports facilities and educational institutions Infrastructural: major international airport healthcare facilities and advanced communication systems Below the Alpha++ = New York and the Alpha+ = Chicago Are 4 alpha cities, 5 alpha- cities, 11 beta cities (including + and -) and 17 gamma cities (+ and -)

Small countries usually islands and Microstates exploit niches in the circulation of global capital by offering offshore financial services. Provide 2 important functions Taxes: taxes on income profits and capital games are typically low or nonexistent companies Incorporated in an offshore center also have tax free status regardless of the nationality of the owners. The United States loses an estimated $70 billion in tax revenue each year because companies operating in the country conceal their assets in offshore tax havens Privacy: Bank secrecy laws can help individuals and businesses EV disclosure in their home countries. People and corporations in litigious professions such as doctor or lawyer accused of mal practice or the developer of the collapsed building can protect some of their assets from lawsuits by storing them in offshore centers as can a wealthy individual who wants to protect assets in a divorce. Creditors cannot reach such assets in bankruptcy hearings. Short statuses of limitation protect all sure accounts from long-term investigation. International Monetary Fund the UN AND Tax Justice institute identify these as offshore centers Dependencies of the U.K.: Anguilla, Cayman Islands, Montserrat, and the British Virgin Islands in the Caribbean; Guernsey/Sark/Alderney, Isle of Man and Jersey in the English Channel; and Gibraltar off Spain Dependencies of other countries: Cook island and Niue,controlled by New Zealand; Aruba. Curaçao and Sint Maarten, controlled by Netherlands. And Hong kong and Macau controlled by China. Independent islands: Bahamas, Barbados m, Dominica, Grenada, st. Kitts and Nevis, st Lucia, St Vincent, the Grenadines Other Independent: Andorra, Cyprus, Ireland, Liechtenstein, Luxembourg, Monaco, San Marino, Switzerland, Belize, Costa Roca, Panama, Uruguay, Liberia , Bahrain. Brunei, Lebanon , Malaysia , ew Zealand the Philippines Singapore and United Arab Emirates

Also known as back office functions. Typical back office functions include insurance claims processing payroll management transcription work another routine clerical activities. also include centers for responding to billing inquiries related to credit cards shipments in claims or technical inquiries related to insulation operation and repair. Traditionally companies housed their back office staff in the same office building downtown of their management staff or at least a nearby buildings. Rising runs downtown haven't used many business services to move routine work to lower rent buildings elsewhere. In most cases sufficiently low rents can be obtained in buildings the suburbs are nearby small towns. However for many business services improve telecommunications have eliminated the need for spatial proximity. selected developing countries have attracted back offices for two reasons related to labor Low wages : run a few thousand dollars per year higher than wages paid in most other sectors of their economy but only 1/10 the way just paid for workers performing similar jobs in developed countries. Attracts better educated in more motivated employees in developing countries because the work is considered relatively high status. Ability to speak English: many developing countries offer a lower wages in developed countries but only a handful of developing countries possess a large labor force fluent in English. In Asian countries such as India Malaysia in the Philippines have substantial numbers of workers with English language skills a legacy of British and American colonial rule. Major multinational companies such as American Express and General Electric have extensive back office facilities in those countries.

Basic industries which export primarily to consumers outside the settlement. Nonbasic industries or Interprises his customers live in the same community essentially consumer services. A settlements economic base is important because exporting by the basic industries brings money and still local caught me those stimulating the provision of more nonbasic consumer services for the settlement. New basic industries attract new workers to settlement in these workers bring their families with them. The settlement then the tracks additional consumer services to meet the needs of the new workers and their families. Dustin new basic industries stimulates establishment of the new supermarkets laundromats restaurants and other consumer services. But a new nonbasic service such as supermarkets will not induce construction of new basic industries. Become unities basic industries can be identified by computing the percentage of the communities worker is employed and different types of businesses. The percentage of workers employed in a particular industry in a settlement is then compared to the percentage of all workers in the country employed in that industry. If the percentage is much higher in that local community in that type of business is the biggest economic activit but a new nonbasic service such as supermarkets will not induce construction of new basic industries. Become unities basic industries can be identified by computing the percentage of the communities worker is employed in different types of businesses. The percentage of workers employed in a particular industry in a settlement is then compared to the percentage of all workers in the country employed in that industry. If the percentage is much higher in that local community not type of business is a basic economic activity.

BUSINESS SERVICES large Metropolitan areas especially Chicago, Los Angeles, New York, and San Francisco. COMPUTING AND DATA PROCESSING: Boston and San Jose High tech industries support services; Austin, Orlando and Raleigh-Durham MILITARY ACTIVITY SUPPORT SERVICES: Albuquerque, Colorado Springs, Huntsville, Knoxville, and Norfolk. Management consulting services:Washington DC. Consumer services Entertainment and recreation: Atlantic City Las Vegas and Reno Medical services: Rochester, Minnesota PUBLIC SERVICES state capitals: Sacramento and Tallahassee Large universities: Tuscaloosa Military bases: Arlington