Chapter 8, continued Financial Services Producer Services Case Studies Producer Services Locations Trade in Services Technological Change in Services Electronic Funds Transfer Offshore Banking & Back-Office Locations Consumer Services

Financial Services Concentration Of Banking Employment Financial Regulation And Deregulation

Producer Services Case Studies Accounting: The collapse of Arthur Anderson & the replacement: Accenture Design Services – niche markets – –They are the norm across the producer services Legal Services – a wide variety of firm sizes and types of practice –Co-counseling – the reality the within producer services of professional regulation in many industry lines

KPMG –An Example of a Globalized Service Firm

Hierarchy & Concentration in Law Firms

The Location of Producer Services –

Trade in (Producer) Services Differences in export orientation by industry Differences in export orientation by size of establishment The 35% figure for exports – it is likely rising over time

International Service Transactions The pathways discussed here are equally valid from an interregional perspective Four pathways to trade: –Cross border supply – no movement of either buyer or supplier across border –Consumption abroad - purchaser goes across border to get service –Commercial presence – supply services through cross-border affiliates –Flow of naturalize persons – labor moves to region of the consumer to provide the service

International (Interregional) Trade in Services Difficult to measure, in large measure due to advances in IT The issue of whether services are supplied due to the theory of comparative advantage (factor conditions) or competitive advantage (Porter – see Ch. 11) International Production Systems – governance, global value chains, location

Technological Change & Electronic Funds Transfer The eastward flow of funds over fiber optic networks – over $1.5 trillion daily

Offshore Banking

Back Office Locations Shift from movement of paper to just digital activity

Consumer Services Revisited Previously discussed – central places Rethinking role of consumer services retail, entertainment, sports, arts, the rise of tourist spaces Many relatively Small countries U.S. Canada Mexico Caribbean South America Tourism: Business vs. Personal vs. Mixed trip purposes

Changing Patterns of Consumption

Shifts in the Composition of the Recreation Account Flat Up, then down Up then down