© Peter Dicken 2015.

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© Peter Dicken 2015

‘Making the World Go Round’: Advanced Business Services Global Shift Chapter16

Review Concepts to Review Key Words Financialization; information and communications technologies, knowledge networks, global cities, state/TNC relationships, regulation and deregulation Key Words Advanced business services, ‘casino capitalism’, global 24-hour trading, executive recruitment, advertising

Advanced Business Services: Definition and Structure Definitions financial services banks ‘casino capitalism’ Current Trends concentration, consolidation and diversification Drivers Behind ABS market saturation disintermediation deregulation internationalization

ABS and Information Information and ABS Impact of IT on ABS Electronic communications Securitization and derivatives Risk becomes delocalized and outsourced Impact of IT on ABS Global 24-hour trading? Collapse of space and time, instantaneous financial transactions worldwide Most ABS depend on having a direct presence within their markets

Regulation and Deregulation Trend to increasing deregulation until 2008 crisis Deregulatory pressures Regulation Historically the most tightly regulated industry Regulations are in two types governing the relationship between different financial activities governing entry of firms Reintervention of the state post-2008

Geographies of ABS Deterritorialization of ABS? ABS are not tied to raw materials locations However, it also makes geography more, not less, important Role of the Global City Attractions of the global city The potential for other cities to develop as financial centres is limited Decentralization of ABS ‘Back-office’ functions decentralized Offshore financial centres