Contemporary Human Geography 3 rd Edition

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1 Chapter 12 Lecture Contemporary Human Geography 3 rd Edition Chapter 12: Services & Settlements Marc Healy Elgin Community College

2 12.1 Types of Services Consumer Services Nearly one-half of all jobs in the United States provide a consumer service. Retail and wholesale department stores, grocers and motor vehicle sales and service, for example Health and social services hospitals, social assistance, and other health-care services Education services Leisure and hospitality services restaurants, bars, lodging, and the arts and entertainment

3 12.1 Types of Services Consumer Services Retail and Wholesale Health and Social Services Education Services Leisure and Hospitality Services

4 12.1 Types of Services Business Services The principal purpose of a business service is to facilitate the activities of other businesses. One-fourth of all jobs in the United States are in business services. Professional services technical services and support services Transportation and information services trucking, publishing, broadcasting, and utilities Financial services finance, insurance, and real estate (FIRE)

5 12.1 Types of Services Business Services Professional Services Transportation and Information Services Financial Services

6 12.1 Types of Services Public Services A public service is to provide security and protection for citizens and businesses. Most jobs are in federal, state, and local governments.

7 12.1 Types of Services Changes in Job Sectors Between 1972 and 2013, all of the growth in employment in the United States was in services, whereas employment in primaryand secondary-sector activities declined. The service sector was also the sector that was impacted the most by the severe recession that began in 2008.

8 12.1 Types of Services Changes in Job Sectors

9 12.2 Central Place Theory Central Place Theory Central place theory, first proposed in the 1930s by German geographer Walter Christaller, helps explain how the most profitable location can be identified.

10 12.2 Central Place Theory Market Area of a Service A central place is a market center where people cluster to buy and sell goods and services. To represent a market area (or hinterland) in central place theory, geographers draw hexagons around settlements.

11 12.2 Central Place Theory Market Area of a Service

12 12.2 Central Place Theory Market Area of a Service The United States can be divided into market areas based on the hinterlands surrounding the largest urban settlements.

13 12.2 Central Place Theory Range of a Service To determine the extent of a market area, geographers need two pieces of information about a service: its range and its threshold.

14 12.2 Central Place Theory Threshold of a Service The threshold is the minimum number of people needed to support the service. Convenience stores and fast-food restaurants appeal to nearly everyone, whereas other goods and services appeal primarily to certain consumer groups.

15 12.3 Hierarchy of Consumer Services Nesting of Services and Settlements Developed countries have many small settlements with small thresholds and ranges and far fewer large settlements with large thresholds and ranges.

16 12.3 Hierarchy of Consumer Services Rank-Size Distribution of Settlements Many developed countries conform to the rank-size rule, in which the country s nthlargest settlement is 1/n the population of the largest settlement. Many less-developed countries follow the primate city rule, in which the largest settlement, called the primate city, has more than twice as many people as the secondranking settlement.

17 12.3 Hierarchy of Consumer Services Rank-Size Distribution of Settlements

18 12.4 Market Area Analysis Profitability of a Location Geographers use the two components of central place theory range and threshold to determine whether a location would be profitable. Here s how: Define the market area. Estimate the range. Estimate the threshold. Predict the market share.

19 12.4 Market Area Analysis Profitability of a Location

20 12.4 Market Area Analysis Periodic Markets A periodic market is a collection of individual vendors who come together to offer goods and services in a location on specified days. Periodic market frequencies vary by culture: Muslim countries Markets are once a week in each of six cities, with no market on Friday, the Muslim day of rest. Rural China Markets operate in three locations on alternating three day cycles, and no market on the tenth day. Three cycles fit in a lunar month.

21 12.4 Market Area Analysis Periodic Markets Periodic market frequencies vary by culture: Korea Two 15-day market cycles fit in a lunar month. Sub-Saharan Africa Markets occur every 3 to 7 days. Variations in the cycle stem from ethnic differences.

22 12.5 Hierarchy of Business Services Business Services in Global Cities Financial institutions Corporations obtain and store funds for expansion of production in centers of finance. Headquarters of large corporations Shares of these corporations are bought and sold on stock exchanges located in global cities. Lawyers, accountants, and other professional services Global cities provide advice to major corporations and financial institutions.

23 12.5 Hierarchy of Business Services Ranking Global Cities A combination of factors are used to identify and rank global cities: 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

24 12.5 Hierarchy of Business Services Ranking Global Cities A combination of factors are used to identify and rank global cities: Infrastructural factors a major airport, health-care facilities, and advanced communications systems Communications Computers in the twentieth century make it possible to communicate immediately with coworkers, clients, and customers around the world. Transportation Motor vehicles and airplanes make it possible to deliver people, inputs, and products quickly.

25 12.5 Hierarchy of Business Services Ranking Global Cities

26 12.5 Hierarchy of Business Services Consumer and Public Services in Global Cities Because of their large size, global cities have consumer services with extensive market areas, but they may have even more consumer services than large size alone would predict.

27 12.6 Business Services in Developing Countries Offshore Financial Services Small countries exploit niches in the circulation of global capital by offering offshore financial services. Taxes Taxes on income, profits, and capital gains are typically low or nonexistent. Privacy Bank secrecy laws can help individuals and businesses evade disclosure in their home countries.

28 12.6 Business Services in Developing Countries Offshore Financial Services

29 12.6 Business Services in Developing Countries Business-Process Outsourcing Selected developing countries have attracted back offices for two reasons related to labor: Low wages What is regarded as menial and dead-end work in developed countries may be considered relatively high-status work in developing countries. Ability to speak English In Asia, countries such as India, Malaysia, and the Philippines have substantial numbers of workers with Englishlanguage skills.

30 12.7 Economic Specialization of Settlements Economic Base The economic activities in a settlement can be divided into two types: A basic business exports primarily to customers outside the settlement. A nonbasic business serves primarily customers living in the same settlement. The economic base of a settlement is its unique cluster of basic businesses.

31 12.7 Economic Specialization of Settlements Economic Base

32 12.7 Economic Specialization of Settlements Distribution of Talent Some cities have a higher percentage of talented individuals such as scientists and professionals. Richard Florida found that individuals with special talents gravitate toward cities that offer more cultural diversity, and developed a coolness index to measure the desirability of cities.

33 12.7 Economic Specialization of Settlements Distribution of Talent

34 12.8 Services in Rural Settlements Rural settlements are either clustered or dispersed: A clustered rural settlement is an agricultural-based community in which a number of families live in close proximity to each other, with fields surrounding the collection of houses and farm buildings. A dispersed rural settlement is characterized by farmers living on individual farms isolated from neighbors rather than alongside other farmers in settlements.

35 12.8 Services in Rural Settlements Clustered Rural Settlement Circular clustered rural settlements In sub-saharan Africa, the Maasai people, who are pastoral nomads, build circular settlements known as kraal. Linear clustered rural settlements Long-lot farms can be seen today along the St. Lawrence River in Québec.

36 12.8 Services in Rural Settlements Clustered Rural Settlement

37 12.8 Services in Rural Settlements Dispersed Rural Settlements U.S. dispersed rural settlements A dispersed pattern developed because most immigrants to the Middle Atlantic colonies arrived individually rather than as members of a cohesive group, as in New England. U.K. dispersed rural settlements In the United Kingdom between 1750 and 1850, the enclosure movement consolidated individually owned strips of land surrounding a village into a large farm owned by a single individual.

38 12.8 Services in Rural Settlements Dispersed Rural Settlements

39 12.9 Urban Settlements in History Consumer services The first permanent settlements may have been places for nomads to bury and honor their dead. Business services Early urban settlements were places where groups could store surplus food and trade with other groups. Public services Early settlements housed political leaders as well as military forces to guard the residents of the urban settlement and defend the surrounding hinterland from seizure by other groups.

40 12.9 Urban Settlements in History

41 12.9 Urban Settlements in History

42 12.10 Urbanization Percentage in Urban Settlements In developed countries, 77 percent live in urban areas, compared to 48 percent in developing countries. The major exception is Latin America, where the urban percentage is comparable to developed countries. The population of Earth s urban settlements exceeded that of rural settlements for the first time in human history in 2008.

43 12.10 Urbanization Percentage in Urban Settlements

44 12.10 Urbanization Number in Urban Settlements Developed countries have a higher percentage of urban residents, but developing countries have more of the very large urban settlements Eight of the 10 most populous cities today are in developing countries.

45 12.10 Urbanization Number in Urban Settlements

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