Chapter 12 Flashcards
Define service
Any activity that fulfills a human want/need in exchange for $
What sector of the economy do services fall under?
Tertiary sector
Define settlement
A permanent collection of buildings + people living there
What distribution must services follow?
Proximity to the market
What are three subdivisions of the service sector of the economy?
- Consumer services
- Business services
- Public services
Define consumer services
Providing services to individual consumers who desire them and can afford to pay for them
What are the 4 main types of consumer services, and provide an ex. for each
- Retail+whole sale: grocers, dep. stores, car salesmen
- Education services: teachers
- Health+social services: Doctors offices, nursing homes
- Leisure+hospitality: restaurants, bars, lodging
Define business services
Services that facilitate the activities of other businesses
What are three types of business services, and provide an ex. of each
- Professional services: law, engineering, accounting
- Financial sevices: AKA F.I.R.E-Finance, insurance, real estate, banks
- Trans.+info. services: Trucking to publishing
Define public services
Providing security and protection for citizens and businesses
State changes in # of employees b/w 1975-2010 in business services
- Jobs expanded most rapidly in prof. services
- Jobs grew more slowly in finance+trans. services b/c less amt. of workers are required, improved efficiency
State changes in # of employees b/w 1975-2010 in consumer services
- rapid increase=provision of health care. ex: hospital staff, clinics, nursing homes
- other large increase in: education, entertainment, recreation
- no increase in retail
Explain how the service sector contributed to the 2008 recession
-rapid rise in real estate prices=speculators get properties+resell at higher price -poor judgment in lending $ by fin. instit. -poor credit=high risky loans
Define central place theory
Selecting the right location for a new shop to maximize profit
What does central place theory seek to explain?
How the most profitable location can be found
Define central place
A market center for the exchange of goods+services by people attracted from the surrounding area
What is a market place?
The are surrounding a service from which customers are attracted
What other term is sometimes used to refer to a market area?
Hinterland
What shape does central place their hypothesize for market area? Why?
Hexagon, it represents a compromise b/w circles+squares has no gaps
Define range
The maximum distance people are willing to travel to use a service
List services with long ranges and services with shorter ranges
- Long ranges: concerts, professional ball games, unique things
- Shorter ranges: groceries, pharmacies, convenience stores
Define threshold
The minimum # of people needed to support the service
Not all people within a market are can be ounted when determining location of a service by considering its threshold. Explain how this is so, and give ex.’s
Some services only apply to certain groups of people. Ex: Movies attract younger people, amusement parks attract families, night clubs attract crazy people. ;)
Small settlements have service with _____ thresholds, _____ ranges and _____ market areas.
-Small thresholds -short ranges -small market area
Larger settlements have _____ thresholds, ranges and market areas
larger
What must smaller neighborhoods in larger neighborhoods do also?
Provide services that have small thresholds and ranges
Who created the original study in central place theory? Where?
Walter Christaller, southern Germany
Who documented the central place theory phenomenon in the U.S. Where?
Brian Berry in the Mid west
In MDC’s, the pattern of cities follows the rank-size-rule. What is it?
The country’s nth largest settlement is 1/n the pop. of the largest settlement. -where settlements are ranked from largest to smallest
If the largest city in a country is more than twice the size of the second city, it is said to be what?
A primate city
According too geographers, where is the best location for a service?
Proximity to customers
The gravity model helps explain this as the optimal location is _____ related to the # of people in the area and ______ related to the distance they must travel.
directly, inversely
What two patterns are reflected by consumer behavior?
- The greater # of people living in a particular place, the greater is the # of potential customers
- The farther people are from a particular service, the less likely they are to use it
Define periodic market
Provides goods to residents of LDC’s. Ex: flea market
What groups of people and areas are provided goods by periodic markets?
Residents of LDC’s, rural areas in MDC’s, where pop. is sparse and people have low income
Explain why business services are disproportionately concentrated in global cities
Global cities are most closely integrated into the global economic system b/c they are at the center flow of info+capital
Bullet major characteristics of global cities
- Headquarters of large corps. 2. Prof. clusters in global cities 3. Centers for finance
What functions do offshore centers provide, and explain each?
- Taxes-taxes on income, profits+capital gains are typically low or non existent
- Privacy-banks secrecy laws can help individuals+businesses evade disclosure
Where is a prominent example of on offshore center?
The Cayman Islands
What are typical back-office functions?
Insurance claims processing, payroll management, transcription work
Why have LDC’s been able to attract back offices?
- Low wages- considered low in MDC’s but high in LDC’s
2. Ability to speak English- The ability to speak English in a foreign country is valuable
Define basic industry
Industries that sell their products or services primarily to consumers outside the settlement
Define non basic industry
Enterprises whose customers live in the same community-essentially consumer services
What is the economic base of a community?
A community’s unique collection of basic industries
Explain how a basic industry creates new types o jobs.
Exporting brings in $ into the local economy, stimulating attraction of that area
Cleceland’s economic base during the industrial rev…
steel
Cleveland’s economic base in post-industrial society is…
health services ex: hospitals, clinics
Baltimore’s economic base during the industrial rev…
fabricated steel products
Baltimore’s economic base in post-industrial society is…
Biotech.
