Chapter 12 Flashcards
Service
- is any activity that fulfills a human want or need and returns money to those who provide it
- developed countries very few people work in agriculture more in services
Consumer Services.
The main purpose of consumer services is to provide services to individual consumers who desire them and can afford to pay for them.
retail
Education
Health
leisure
other
Around 50% of all jobs in the United Stat
Business Services.
The principal purpose of business services is to facilitate the activities of other businesses.
25% of all jobs in the United States are in business services
-professional financial transportation
Public Services
The purpose of public services is to provide security and protection for citizens and businesses
About 8% of all U.S. jobs are in the public sector (federal, state or local government)
Education is included in consumer services
What are types of services in Canada?
n Canada (2019), ~19 million people worked in the Canada (full time)
~1 million worked in goods production (agriculture, mining, forestry, etc) (5% of the total)
~3.1 million worked in manufacturing and construction (16% of the total)
In Canada (2019), ~15 million people worked in the services sector (79% of the full time workers)
~2.8 million worked in wholesale and retail trade
~2.5 million worked in health care and social services
~1.2 million worked in finance, real estate, trade, or insurance
~1.5 million worked in professional, scientific and technical services
~1.4 million worked in educational services
Types of Services in Manitoba
In Manitoba, in 2019, 653,000 people worked full time
25,000 worked in agriculture (4%)
114,000 worked in manufacturing and construction (17.5%)
501,000 worked in the services sector (78%)
Healthcare and social assistance was the largest category and education was second
Compare services in less developed to more developed countries
Services generate more than 66% of GDP in most developed countries, compared to less than 50% in most developing countries
Services cluster in developed countries people more people in those countries are able to pay for the services
settlement
Services are located in settlements
A settlement is a permanent collection of buildings where people reside, work, and obtain services
Proximity or closeness to a market- optimal location for a service is to be close to its customers
Changes in job sectors
All the growth in employment in the United States has been in services, whereas employment in primary- and secondary-sector activities has declined. Within business services, jobs expanded most rapidly in professional services and more slowly in finance and transportation services because of improved efficiency; fewer workers are needed to run trains and answer phones, for example. On the consumer services side, the most rapid increase has been in the provision of health care, education, entertainment, and recreation.
Central place theory
helps to explain how the most profitable location can be identified
as first proposed in the 1930s by German geographer Walter Christaller, based on his studies of southern Germany
central place
is a market center where people cluster to buy and sell goods and services
market area (or hinterland)
The area surrounding a service from which customers are attracted is
Because most people prefer to get services from the nearest location, the closer to the center of the circle, the greater the percentage of consumers who will choose to obtain services from that node
People near the edge of the market area are equally likely to use the service or go somewhere else
circle can be drawn on map to show this
To determine market area, you need to know the range and the threshold
A market area is a functional region – who will use the services at a local food store, gas station, restaurant, etc?
range
the maximum distance people are willing to travel to use a service
People are willing to go only a short distance for everyday consumer services, such as groceries and pharmacies
But they will travel longer distances for other services, such as a concert or sporting event
The range must be modified because most people think of distance in terms of time
How long will it take to drive to the place? Will rush hour affect it? Is there construction? What are the road speeds?
radius of circle
threshold
is the minimum number of people needed to support the service
How expected consumers inside the range are counted depends on the product
Customer counts depend on product
Movie theatres attract younger people, chiropractors attract older folks, amusement parks attract families with children, and nightclubs appeal to singles
The Geometry of Market Areas
The market area is the area of the hexagon, the range is the radius, and the threshold is a sufficient number of people inside the area to support the service.
Rank-Size Distribution of Settlements
In many developed countries, geographers observe that ranking settlements from largest to smallest (population) produces a regular pattern
This is the rank-size rule, in which the country’s nth-largest settlement is 1/n the population of the largest settlement
According to the rank-size rule, the second-largest city is ½ the size of the largest, the fourth-largest city is ¼ the size of the largest, and so on.
Primate city rule
he largest settlement has more than twice as many people as the second ranking settlement
E.g. more than twice as many people than the next smallest settlement
Mexico City is a good example, and with this type of distribution, the largest city in the country is called a primate city
Mexico City (population ~8.9 million) is more than twice as large as the next largest city (Guadalajara, population ~1.5 million) Mexico City is over ten times larger than its fifth-largest settlement, Toluca (population ~500,000)
Rather than 5x larger – what we would expect with the rank-size rule
What are the characteristics of a primate city?
In addition to being at least twice as large as the next largest settlement, a primate city is a country’s leading city economically, culturally, historically, and politically
Dominates the population, political and economic landscape
Imbalance of development
they often become islands of growth
Often the capital city
India China and Canada don’t have primate cities
World’s largest primate cities are in LDCs
e.g. Nairobi, Kenya; Jakarta, Indonesia; Cairo, Egypt; Bangkok, Thailand; Dhaka, Bangladesh
Nesting of Services and Settlements
According to central place theory, market areas across a developed country would be a series of hexagons of various sizes, unless interrupted by physical features.
-hamlet- very small market area
Village-
Town
city
In his original study, Walter Christaller showed that the distances between settlements in southern Germany followed a regular pattern.
- larger services provide consumer services that have larger thresholds ranges and market areas
- only consumer services that small thresholds small ranges and small market areas are found in small settlements
Costco requires a large range threshold and market area
Gravity Model
The gravity model predicts that the optimal location of a service is directly related to the number of people in the area and inversely related to the distance people must travel to access it
The greater the number of people living in a particular place, the greater the number of potential customers for a service
The farther people are from a particular service, the less likely they are to use it
Food Deserts
A food desert as an area that has a high number of low-income residents and poor access to a grocery store
Poor access is defined by the US government as further than 1 mile
This is not far for people to travel in a car, but it is far for low-income people who do not own cars
Think of people who live in a downtown area. Is there likely to be a grocery store that stocks fresh fruits, vegetables, and meat products?
How to know if a location is profitable?
range and threshold define market area estimate range estimate threshold market share
Sharing Services
Services that involve sharing have expanded rapidly,
Ride sharing services, such as Uber and Lyft, match people looking for a ride with people who are willing to transport them in their cars.
Are Uber drivers independent contractors or employees of Uber, why would it matter?
Ride sharing companies responsibiltiy to screen train the people if they are employees not if they are contractors
California uber and lyft lawsuit
-uber and lyft must classify their drivers as employees rather than independent contractors
Companies were violating state labor laws
AirBNB a business or a consumer service
Airbnb employees are primarily computer operators, a type of employment classified under transportation and information business services. People access Airbnb through their electronic devices. The owners of the rented rooms and homes are not Airbnb employees, nor are the people who might clean and repair the rooms and homes.
Airbnb competes with hotels, which are clearly classified as a leisure and hospitality consumer service. Airbnb offers nightly rentals, and does not have leases, unlike regular residential rental units. Airbnb units cause a reduction in availability of long-term rentals, especially for lower-income people.
Global Cities
A center of global economic power, influencing the world’s businesses
-Tend to be large but not megacities
-Command centers that influence the flow of info good and capital throughout the global urban center
Economic, political, cultural, and infrastructure factors define a global city
Economic factors
-Number of headquarters for multinational corporations, financial institutions, and law firms that influence the global economy
Political factors
-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 factors
A major international airport, health-care facilities, and advanced communications
periodic market
is a collection of individual vendors who come together to offer goods and services in a location on specified days.
A periodic market is a way to provide consumer services to residents of developing countries.
Set up in a street early morning that taken away and put up the next morning
The frequency of periodic markets varies by culture
E.g. Sub-Saharan Africa: markets occur every 3-7 days
E.g. Korea: Two 15-day market cycles fit in a lunar month
Variations come from ethnic differences in different areas
Levels of Global Cities
Modern transportation and communications enable industry to decentralize
but they reinforce rather than diminish the primacy of global cities in the world economy
Divided into alpha beta and gamma
London and new York are global
Consumer and Public Services in Global Cities
Global cities have large market areas and a lot of consumer servies
A lot of wealthy people live in global cities, so luxury items are often found in global cities (as are leisure activities such as concerts, restaurants and sports events)
Business Services in Global Cities
Global cities play an especially important role in global business services
-headquarters
Offshore Financial Services
Small countries sometimes offer offshore financial services.
Offshore centers provide two important functions in the global circulation of capital:
Taxes (low or non-existent)
Privacy (evading disclosure in the companies homeland)
