© 2014 Pearson Education, Inc. Chapter 12 Lecture Services and Settlements The Cultural Landscape Eleventh Edition Matthew Cartlidge University of Nebraska-Lincoln

© 2014 Pearson Education, Inc. Key Issues Where are consumer services distributed? Where are business services distributed? Where are the world’s urban centers located?

© 2014 Pearson Education, Inc. Three Types of Services (Tertiary Sector) 1.Consumer services (50% of all jobs in U.S.) –Retail, Education, Health, Leisure 2.Business services (25% of all jobs in U.S.) –Professional, Financial, Transportation 3.Public services (10% of jobs in U.S.) –Government, Security and protection

© 2014 Pearson Education, Inc. Where Are Services Distributed? Rising and Falling Service Employment –Service sector of the economy has seen nearly all the growth in employment worldwide. –Service sector has also been most negatively impacted by the recession. Change in Number of Employees –Within business services, jobs expanded most rapidly in professional services - engineering, management, and law. –Within consumer services, fastest increase has been in health care.

© 2014 Pearson Education, Inc. Changes in U.S. Employment

© 2014 Pearson Education, Inc. KEY ISSUE 2: WHERE ARE CONSUMER SERVICES DISTRIBUTED?

© 2014 Pearson Education, Inc. Where Are Consumer Services Distributed? Market Area of A Service –A central place is a market center for the exchange of goods and services by people attracted from the surrounding area. It is centrally located to maximize accessibility. –A market area, or hinterland, is the area surrounding a service from which customers are attracted. Remember “nodal” or “functional” region?

© 2014 Pearson Education, Inc. Where Are Consumer Services Distributed? Christaller’s Central Place Theory s –Based on study of southern Germany –Helps identify the most profitable location for a consumer service –Larger settlements offer more consumer services and more specialized services

© 2014 Pearson Education, Inc. Assumptions of Central Place Theory No topographic barriers No difference in farm productivity Evenly dispersed farm population People with similar lifestyles and incomes Differing thresholds (minimum number of consumers) to support different products Goods and services are purchased at nearest center

© 2014 Pearson Education, Inc. Where Are Consumer Services Distributed? Nesting of Services and Settlements –Central place theory suggests that market areas across a developed country would be shaped as a series of hexagons of various sizes, unless interrupted by physical features. –Four different levels of market area exist: 1.Hamlet (smallest) 2.Village 3.Town 4.City (largest)

© 2014 Pearson Education, Inc. Christaller’s Central Place Theory

© 2014 Pearson Education, Inc. CENTRAL PLACE THEORY IN NORTH DAKOTA Central place theory helps explain the distribution of settlements of varying sizes in North Dakota. Larger settlements are fewer and farther apart, whereas smaller settlements are more numerous and closer together

© 2014 Pearson Education, Inc. Market Area Market area varies for each service Measured by range and threshold –How far are you willing to travel for a certain service? –How many people are needed to support a certain service?

© 2014 Pearson Education, Inc. Where Are Consumer Services Distributed? Range and Threshold of a Market Area –The range of a service is the maximum distance people are willing to travel to use it. People travel short distances for everyday services – for example, groceries and hair cuts People travel greater distances for services offered exclusively in specific places – for example, concerts, professional sporting events, specialized medical care

© 2014 Pearson Education, Inc. –The threshold of a service is the minimum number of people needed to support the service. Service providers determine the suitability of a service center by overlaying the range of potential customers to its threshold.

© 2014 Pearson Education, Inc. Where Are Consumer Services Distributed? Hierarchy of Consumer Services –Small settlements provide consumer services that have small thresholds, short ranges, and small market areas –Larger settlements provide consumer services that have larger thresholds, long ranges, and large market areas –Developed countries have numerous small settlements with small thresholds and ranges and far fewer large settlements with large thresholds and ranges.

© 2014 Pearson Education, Inc. Primate Cities If no other city in a country even comes close to rivaling the capital city in terms of size or influence, the city is a primate city Often, but not always, the capital city Normally, a primate city must be at least twice as populous as the next largest city Not all countries have primate cities Bangkok has been called “the most primate city on earth” because it is 40 times larger than Thailand’s second largest city

© 2014 Pearson Education, Inc. Examples of Primate Cities Paris (2.2 million) is definitely the focus of France while Marseilles has a population of 800,000. Similarly, the United Kingdom has London as its primate city (6.9 million) while the second largest city, Birmingham, is home to a mere one million people. Mexico City, Mexico (9.8 million in the city; 16.6 million in the metropolitan area) outshines Guadalajara (1.7 million). A huge dichotomy exists between Bangkok (5.9 million) and Thailand's second city, Nakhon Ratchasima (278,000).

© 2014 Pearson Education, Inc. Countries without Primate Cities India's most populous city is Mumbai (formerly Bombay) with 9.9 million; second is Delhi with 7 million, third is Kolkata (formerly Calcutta) with 4.4 million, and fourth is Chennai (formerly Madras) with 3.8 million. With the New York City metropolitan area population at approximately 20.1 million, second ranked Los Angeles at 15.8 million, and even third ranked Chicago at 8.8 million, the United States lacks a primate city. China, Canada, Australia, and Brazil are additional examples of non-primate-city countries.

© 2014 Pearson Education, Inc. Countries without a Primate City

© 2014 Pearson Education, Inc. Rank-Size Rule Describes the pattern of urban area sizes in complex economies where urbanization is well- established, such as the U.S. The nth largest city will be 1/n the size of the largest city For example, the 2 nd largest city will be ½ the size of the largest city The 5 th largest city will be 1/5 the size of the largest city

© 2014 Pearson Education, Inc. Rank-size distribution in U.S. and Mexico The size of settlements follows the rank-size rule in the United States and the primate city rule in Mexico.

© 2014 Pearson Education, Inc.

Where Are Consumer Services Distributed? Market Area Analysis –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 the distance people must travel to access it. Essentially, the best location will be the one that minimizes travel for all potential customers.

© 2014 Pearson Education, Inc. Macy’s Department Stores near Dayton

© 2014 Pearson Education, Inc. KEY ISSUE 3: WHERE ARE BUSINESS SERVICES DISTRIBUTED?

© 2014 Pearson Education, Inc. Where Are Business Services Distributed? Hierarchy of Business Services –All urban settlements provide consumer services, but not every settlement of a given size has the same number and types of business services. –Urban settlements tend to specialize in one or a few specific business services. –A handful of urban settlements are known as global cities (or world cities) that play an especially important role in global business

© 2014 Pearson Education, Inc. Where Are Business Services Distributed? Business Services in Global Cities –Global cities or world cities are at the top of the urban settlement hierarchy. Center of the flow of information and capital in the global economy. Location of countless large corporations’ headquarters. Global cities are subdivided based on economic, political, cultural, and infrastructure factors. London and New York are the two dominant global cities

© 2014 Pearson Education, Inc. Factors to Distinguish Global Cities 1.Economic: number of headquarters for multinational corporations, financial institutions, and law firms 2.Political: headquarters for international organizations and capital of countries 3.Cultural: presence of cultural institutions (museums, theaters), media outlets, sports facilities, and educational institutions 4.Infrastructure: major international airport, health care facilities, advanced communications systems

© 2014 Pearson Education, Inc. Global Cities Global cities are centers for the provision of services in the global economy. London and New York, the two dominant global cities, are ranked as alpha++.

© 2014 Pearson Education, Inc. Global Cities in North America

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KEY ISSUE 4: WHERE ARE THE WORLD’S URBAN CENTERS LOCATED?

© 2014 Pearson Education, Inc. Urbanization The process by which the population of urban settlements grows, known as urbanization, has two dimensions: 1.An increase in the number of people living in urban settlements. –Developing countries have 8 of the 10 most populous cities.

© 2014 Pearson Education, Inc. World’s Most Populous Cities 1.Tokyo, Japan (37,126,000) 2.Jakarta, Indonesia (26,063,000) 3.Seoul, South Korea (22,547,000) 4.Delhi, India (22,242,000) 5.Shanghai, China (20,860,000) 6.Manila, Philippines (20,767,000) 7.Karachi, Pakistan (20,711,000) 8.New York, USA (20,464,000) 9.Sao Paulo, Brazil (20,186,000) 10.Mexico City, Mexico (19,463,000) Tokyo, JapanJakarta, IndonesiaSeoul, South KoreaDelhi, IndiaShanghai, ChinaManila, PhilippinesKarachi, Pakistan New York, USA Sao Paulo, Brazil Mexico City, Mexico

© 2014 Pearson Education, Inc. 2. An increase in the percentage of people living in urban settlements. –Percentage of people living in the urban settlements has increased from 3% in 1800 to 6% in 1850, 14% in 1900, 30% in 1950, and 47% in –Developed Countries: 75% of population is urbanized. –Developing Countries: 40% of population is urbanized.

© 2014 Pearson Education, Inc. Developed countries (MDCs) have a higher percentage of people living in cities BUT Developing countries (LDCs) have a larger number of people living in cities

© 2014 Pearson Education, Inc. Percentage Living in Urban Settlements

© 2014 Pearson Education, Inc. Cities with at least 2 million people Most of the world’s largest urban settlements are in developing countries, especially in East Asia, South Asia, and Latin America.

© 2014 Pearson Education, Inc. Urban versus Rural Settlements Three major differences distinguish urban areas from rural areas and thus impact social behavior of the area’s residents: 1.Large size – you probably only know a small percentage of people if you live in an urban area 2.High density – people in urban areas have specialized jobs and compete for jobs and space 3.Social heterogeneity – the larger the settlement, the greater the variety of people