© 2011 Pearson Education, Inc. Chapter 12: Services The Cultural Landscape: An Introduction to Human Geography

© 2011 Pearson Education, Inc. Services (Tertiary) MDCs= where people live today directly relates to WHERE they work (jobs)….so people move where the SERVICE (tertiary) jobs are located! (CITIES!!!): 3/4 of people vs. LDCs= people live near primary/secondary sector jobs (agriculture), often in RURAL areas : 3/4 of people Service = any activity that fulfills a human want or need and returns money to those who provide the service

© 2011 Pearson Education, Inc. Settlements (villages, cities, etc.) Services are located in settlements (permanent collection of buildings where people reside, work, and obtain services) – village -  large cities (less than 1% of actual land area of the globe, but most people live there) –Location of services is important for profitability (close to markets/customers/consumers) –Affluent regions tend to offer more services –Local diversity is evident in the provision of services (nail salons vs. dog walking)

© 2011 Pearson Education, Inc. Where Did Services Originate? More than 2/3 of GDP in MDCs= services Three (3) types of services –1) Consumer services (retail/wholesale services, education, health, leisure/hospitality) About 44 percent of all jobs in the United States –2) Business services (financial & real estate services, professional services, transportation & utility services) About 24 percent of all jobs in the United States –3) Public services (state & local govts) About 17 percent of all jobs in the United States –In the United States, all employment growth has occurred in the services sector

© 2011 Pearson Education, Inc. Percentage of GDP from Services, 2005 Figure 12-1

© 2011 Pearson Education, Inc. Employment Change in the United States by Sector Figure 12-2

© 2011 Pearson Education, Inc. Where Did Services Originate? Services in early rural settlements (before large cities) –Early consumer services met societal needs Examples = burial of the dead, religious centers (churches), manufacturing centers (make weapons, clothing), or places to house families –Early public services -probably followed religious activities –People decided to live together in settlements fortified by a city wall (citadels) that served to protect its citizens –Early business services -to distribute and store food (and trade with each other)

© 2011 Pearson Education, Inc. Where Did Services Originate? Services in early urban settlements –Services in ancient cities Earliest urban settlements dating back to 3,000 B.C. (e.g., Ur in Mesopotamia), Athens (city-state: independent, self-governing communities that included the settlement and nearby countryside), Rome –Services in medieval cities – starting in 11 th century Largest settlements were in Asia! (Middle East, Japan, and China) European cities developed with feudalism and were centered around church leaders and local lords

© 2011 Pearson Education, Inc. Where Are Contemporary Services Located? Services in rural settlements –Half of the world’s population lives in rural settlements –Two types Clustered rural settlements –Circular or linear –Clustered settlements in Colonial America (in New England= groups wanting church focus (avoid N. Americans) Dispersed rural settlements (became more cost- effective!) –In the rest of the U.S. (diverse groups) –In Great Britain »Enclosure movement (pushed people to cities)

© 2011 Pearson Education, Inc. Rural Settlement Patterns Figure 12-10

© 2011 Pearson Education, Inc. Where Are Contemporary Urban Services Located? Population of urban settlements exceeded that or rural settlements for the 1 st time in history in 2008 –Differences between urban and rural settlements, according to Louis Wirth in 1930: Large size High population density Social heterogeneity –According to these criteria, nearly everyone in an MDC now is urban (also, you have access to urban culture and services through t.v., internet, etc.) –Process of urbanization today: –1) Increasing percentage of people in cities (MDCs, 3/4 vs. LDCs, 2/5) ** Except Latin America!! –Increasing number of people in cities (LDCs: NIR= more!!)

© 2011 Pearson Education, Inc. Percentage of Population Living in Urban Settlements Figure 12-14

© 2011 Pearson Education, Inc. Urban Settlements With Populations of at Least 3 Million Figure 12-15

© 2011 Pearson Education, Inc. Why Are Consumer Services Distributed in a Regular Pattern? Central place theory: Where are you going to put your shop/business to provide your consumer service?? (that is the most profitable place to put it) –First proposed by Walter Christaller (1930s) –Theory: explains that the distribution of services is based on the fact that settlements serve as centers of market areas for services; larger settlements are fewer and farther apart than smaller settlements & provide services for a larger # of people willing to travel farther A central place (market center) has a market area (or hinterland) –Size of a market area determined by: Range (how far are people willing to travel?) Threshold (min. # of people needed to support it)

© 2011 Pearson Education, Inc. “Daily Urban Systems” Figure 12-16

© 2011 Pearson Education, Inc. Central Place Theory Figure 12-17

© 2011 Pearson Education, Inc. Market Areas, Range, and Threshold for Kroger Supermarkets Figure 12-18

© 2011 Pearson Education, Inc. Why Are Consumer Services Distributed in a Regular Pattern? Market-area analysis: Would a _______ business be profitable in _____________ area/community? –Profitability of a location Compute the range (How far will people travel?) Compute the threshold (How many people are needed to buy stuff to support this business?) Draw the market area (Draw an irregular circle around the area after calculating the above info.) –Optimal location within a market (Where should the service/business be located to make the most $$?)- use the Gravity model Best location in a linear settlement (beach town) Best location in a nonlinear settlement (regular city)

© 2011 Pearson Education, Inc. Optimal Location for a Pizza-Delivery Service: Use 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 (put the service closer to where there are MORE people who need to travel a shorter distance) Figure 12-20

© 2011 Pearson Education, Inc. Hierarchy of services and settlements Nesting –Market areas in MDCs = a series of hexagons of various sizes unless interrupted by physical features such as mountains, rivers, etc. Rank-size distribution of settlements (a pattern of settlements in a country such that the nth largest settlement is 1/n the population of the largest settlement) –Example: the 2 nd largest city is at least ½ the size of the largest, the 4 th largest is ¼ the size of largest, etc.): NYC vs. LA vs. Chicago OR - Primate city rule (when RSD doesn’t work) – when the largest settlement has more than 2x # as the 2 nd largest city –Primate cities: Copenhagen, London (& Europe) –Can indicate a country’s wealth if LDC (travel issue) Periodic markets (local services- daily markets) –hot dogs

© 2011 Pearson Education, Inc. Central Place Theory (w/4 different levels of market area) Figure 12-21

© 2011 Pearson Education, Inc. Rank-Size Distribution in the United States and Indonesia Figure 12-23

© 2011 Pearson Education, Inc. Why Do Business Services Cluster in Large Settlements? Hierarchy of business services –Services in world cities (law, banking, insurance) – NYC, London, Tokyo: 3 dominant ones today Business: clustering of services is a product of the Industrial Revolution (telephone, computer, airplane) Consumer: retail services w/extensive market areas –May include leisure services of national importance due to large thresholds, large ranges, and the presence of wealthy patrons. (more $$$) Public: world cities are often the center of national or international political power (but always, like with NYC vs. Washington, D.C. ) –Other types of cities: p command & control centers, specialized producer-service centers, dependent centers

© 2011 Pearson Education, Inc. World Cities Figure 12-25

© 2011 Pearson Education, Inc. Why Do Business Services Cluster in Large Settlements? Business services in LDCs: –Offshore financial services Two functions: –Pay less Taxes (little to none) – U.S. loses $70 billion each year in tax revenue –Privacy- hide $$ –Ex: Cayman Islands, U.S. Virgin Islands, Barbados, Caribbean Islands, Liberia in Africa, Liechtenstein –Back Offices (billing centers, call centers, etc.) LDCs are attractive because of: –Low wages in LDCs but high compared to other jobs –Ability to speak English (India, Malaysia, Philippines)

© 2011 Pearson Education, Inc. Why Do Business Services Cluster in Large Settlements? Economic base of settlements –Two types: Basic industries (industries that sell their products or services primarily to consumers outside the settlement)- determine the economic structure of a settlement Economic base (a community’s unique collection of basic industries)- where people work! Non-basic industries (industries that sell their products primarily to consumers in the community) –Specialization of cities in different services (industrial, entertainment, computing, education, military, medical, etc.) –Distribution of talent (more likely to live in diverse cities w/cultural options)

© 2011 Pearson Education, Inc. Economic Base of U.S. Cities Figure 12-28

© 2011 Pearson Education, Inc. Geography of Talent Figure 12-29

© 2011 Pearson Education, Inc. The End. Up next: Urban Patterns