MDCs have more services In LDCs people work to produce food. A SERVICE is any activity that fulfills a want or need and returns money to those who provide it. A SETTLEMENT is a permanent collection of buildings where people reside, work, and obtain services.

Where Did Services Originate? TYPES OF SERVICES Consumer Services Retail, Wholesale, Education, Health, Leisure, Hospitality Business Services Financial, Professional, Transportation Public Services Government: Federal, State, Local Changing face of services Most rapidly growing is Health Care

Where Did Services Originate? ORIGIN OF SERVICES Early Consumer Services Bury the dead 1 st settlements needed services Tools, clothing, pots, etc. Early Public services Religious activities, political leaders, Defenders of the town wall Early Business Services Food, goods

Where Did Services Originate? Services in Contemporary Rural Settlements Clustered Rural Settlements Families live in close proximity and the fields surrounding the village Dividing fields for families Travel time Satellite settlements

Where Did Services Originate? Services in Contemporary Rural Settlements Clustered Rural Settlements Circular rural Settlements The houses and structures of the village surround the fields Linear Rural Settlements Houses on the road Fields are in long strips behind the houses

Where Did Services Originate? Services in Contemporary Rural Settlements Clustered Rural Settlements Colonial American Clustered Settlements Houses surround a common Families have outer fields to grow food In the south the Plantation developed in the 1700s

Where Did Services Originate? Services in Contemporary Rural Settlements Dispersed Rural Settlements Farms in isolation from neighbors, spread out across the landscape Most common in the U.S. People were not as unified. Wanted to work large tracks of land, not discontinuous fields. Enclosure movement Agricultural efficiency; bad village life.

Why are Consumer Services Distributed in a Regular Pattern? CENTRAL PLACE THEORY Central Place Market Area of Service Market Area/Hinterland How to represent a market area?

Why are Consumer Services Distributed in a Regular Pattern? Size of Market area Range of Service Range: the maximum distance someone is willing drive to use a service Short distance? Long distance? Range is measured in TIME not distance

Why are Consumer Services Distributed in a Regular Pattern? Size of Market area Threshold of Service Threshold: the minimum number of consumers needed to maintain a service Where would you put a mall?

Why are Consumer Services Distributed in a Regular Pattern? MARKET-AREA ANALYSIS Profitability of a location Need to know range and threshold Optimal Location within a market Minimizes the distance to the service for the largest number of people Best location in a linear settlement? Best locaton in a non-linear settlement?

Why are Consumer Services Distributed in a Regular Pattern? Hierarchy of Services and settlements Small settlements vs Large settlements Nesting of services and settlements Overlapping hexagons of four different sizes Rank-Size Distribution of Settlements Rank-size Rule Primate City Rule Works in MDCs

Why are Consumer Services Distributed in a Regular Pattern? Hierarchy of Services and settlements Periodic Markets Offer service on certain days Mobile services

Why Do Business Services Locate in Large Settlements? World Cities Ancient World Cities Earliest Urban Settlements Ur Titris Hoyuk Ancient Athens City-state Ancient Rome “All Roads Lead to Rome”

Why Do Business Services Locate in Large Settlements? Medieval World Cities Releasing the Serfs Better roads Power centers Walls Dense and compact

Why Do Business Services Locate in Large Settlements? Modern world cities Business transactions Transportation Communication Business services in World Cities Product of the industrial revolution Financial services for corporate HQs

Why Do Business Services Locate in Large Settlements? Consumer Services in World Cities Extensive market areas Leisure services Public services in World Cities Centers of political power Foreign corporations Example: The UN in New York

Why Do Business Services Locate in Large Settlements? HIERARCHY OF BUSINESS SERVICES Four levels in the Hierarchy World Cities (1 st level) Three major centers: London, New York, Tokyo Second Tier Cities: Chicago, Los Angeles, Brussels, Frankfurt, Paris Third Tier Cities: Houston, Miami, San Francisco, Mumbai, Hong Kong, Mexico City, Rio de Janeiro

Why Do Business Services Locate in Large Settlements? HIERARCHY OF BUSINESS SERVICES Four levels in the Hierarchy Command Control Centers (2 nd Level) HQs of major corporations Concentrations of business services Cities like: Atlanta, Baltimore, Seattle, Phoenix, Philadelphia

Why Do Business Services Locate in Large Settlements? HIERARCHY OF BUSINESS SERVICES Four levels in the Hierarchy Specialized Producer-Service Centers (3 rd level) Research and Development Activities Detroit, Pittsburgh, Rochester, San Jose

Why Do Business Services Locate in Large Settlements? HIERARCHY OF BUSINESS SERVICES Four levels in the Hierarchy Dependent Centers (4 th Level) Provide unskilled jobs Four subtypes Resort Manufacturing Industrial military Mining

Why Do Business Services Locate in Large Settlements? Economic Base of Settlements Basic industries Nonbasic industries Economic Base can be determined by figuring out how many people work in different types of businesses. Then comparing it to the percentage of workers in the rest of the country.

Why Do Business Services Locate in Large Settlements? Specialization of Cities in Different Services Detriot, Gary, Albuquerque, Reno, etc. Business Services in LDCs Offshore financial services Global circulation of capital Back offices Outsourcing Cheaper in LDCs Talent: unevenly distributed

Why Do Services Cluster Downtown? Central Business District Easily accessible Usually the oldest part of town Large concentration of offices, shops, and public institutions AKA – “Downtown”

Why Do Services Cluster Downtown? Retail Services in the CBD (Three Types) Retail Services with a High Threshold Retail Services with a High Range Very specialized with infrequent visitors Retail Services Serving Downtown Workers Examples: Office supplies or specialized auto services. Business Services Offices cluster in specific areas for ease of communication – FACE to FACE

Why Do Services Cluster Downtown? High Land Costs in the CBD Not much space, land is expensive Intensive land use Use land above and below ground Skyscrapers Economically feasible Vertical space vs. Horizontal Space

Why Do Services Cluster Downtown? Activities Excluded from the CBD Declining Manufacturing in the CBD Revolves around the need for land Lack of residents in CBDs People lived downtown, moved out, the poor were there, now people are moving back. European CBDs Less dominated by commercial considerations. Renovation not construction of new

Why Do Services Cluster Downtown? Suburbanization of Businesses Retail Since WWII retail has dropped in the CBD and increased in the suburbs Shopping Malls Factories and Offices Find cheaper land Better communication allows work to be done outside the CBD Suburban working can be a hardship