2.3.4 World Cities in Global & Regional Economies

Question 1

World Cities as Hubs / Funnels of Economic activity

5 Aspects of global cities as hubs / funnels of economic activity

Answer 1

1. Production
TNCs have HQs in World Cities
HSBC, BP, PWC
2. Business, Transport, Trade
Globalisation and connection
Heathrow, City, Gatwick, Stanstead, Luton
3. Political decision-making
Leaders of some World Cities influence internation links
Eric Adams, mayor of NYC
4. Migration
Unskilled, Skilled, Wealthy
High / Low skill migrants aim for World Cities
5. Secondary cities, Economic centres, Regions

Question 2

World City case study: Shanghai

World City case study: Shanghai: 4 aspects

Answer 2

1. Production
2. Business
3. Political decision-making
4. Migration

Question 3

World City case study: Shanghai

.1. Production

Answer 3

Shanghai is a production centre: Production centres in nearby cities, and Shanghai is in the heart of them.
Shanghai port is the busiest container port in the world.
Raw materials, Capital, and Ideas flow through Shanghai to factories etc in surrounding areas

Question 4

World City case study: Shanghai

.2. Business

Answer 4

Shanghai attracts a disporportionate amount of foreign investment.
Favourable terms offered.
Foreign companies more comfortable to locate there as there are foreign companies there already.

Question 5

World City case study: Shanghai

.3. Political decision-making

Answer 5

Shanghai set up as 1 of 14 Chinese ‘open cities’ in 1985.
Some autonomy.

Question 6

World City case study: Shanghai

.4. Migration

Answer 6

Shanghai is a massive magnet for skilled workers nationally & internationally.
HOWEVER, Chinese govt. controls / prevents free movement of people to Shanghai

Question 7

World cities and productivity

What is the relationship between cities and productivity?

Answer 7

Some very large cities are not very productive: Lack of infastructure, skills, entrepreneures, capital. Mainly in LICs.

BUT

Generally, city productivity increases with city size- Large cities are generally more productive

Question 8

World cities and productivity

What are agglomeration economies?

Answer 8

• Productivity gains from the coming together of so many people, skills, services, and industries.
• Shorter distances between people and companies, people, ideas, goods etc. move more quickly Eg City of London: TNCs HQs, banks, research universities all close together.

Question 9

World cities and productivity

What are Agglomeration diseconomies and where can they be found?

Answer 9

Agglomeration diseconomies can be found in badly-mmanaged cities.
This leads to deglomeration.
- Eg some LIC cities Eg major companies spreading out from Johannesburg

Question 10

World cities in global & regional economies: Plenary

Are cities normally productive?

Answer 10

YES. Cities are normally- but not always -productive, due to agglomeration economies.

Question 11

World cities in global & regional economies: Plenary

Are world cities regular examples of productivity?

Answer 11

World cities are extreme examples, which are interconnected

Question 12

World cities in global & regional economies: Plenary

What do World Cities do to economic activity?

Answer 12

World cities are funnels of economic activity:
- Production
- Business, Transport, Trade
- Political decision-making
- Migration
- Capital, raw materials, & people are channeled in and out, & organised and directed globally via World Cities

The growth flows OUT- locally, regionally, and internationally