©2011 Cengage Learning

Chapter 6 ©2011 Cengage Learning REGIONAL AND COMMUNITY ANALYSIS

The Origins of Communities Economic activity is the foundation for communities today Economic activity has a major effect on the choice of location ©2011 Cengage Learning

Commercial influence results in three types of cities The central city: performs a variety of services for the surrounding area. The transportation service city: provides services along transportation routes including transportation nodes (locations) such as “break cargo” points. Special function cities: mining, government, retirement, and others. ©2011 Cengage Learning

Reasons for community origins Break-cargo Religious center Retirement Political Resource extraction Manufacturing Entertainment Education Transport service Central city ©2011 Cengage Learning

Few communities are self-sufficient & must: Pay for the imported goods Export goods Earn money Use the money to buy needed imports ©2011 Cengage Learning

All companies and their employees are separated into two broad categories Basic industries or basic employment Local or secondary industries and employment ©2011 Cengage Learning

Economic change is certain: Communities need to change with new market conditions New jobs are required for the economic health of a community ©2011 Cengage Learning

Changes in the economy include: Technology Population Demographics Availability of Resources ©2011 Cengage Learning

Communities compete to attract businesses & may leave communities that are: High-cost High-tax Not business friendly ©2011 Cengage Learning

Businesses may move into communities that are: Low-cost Low-tax Business friendly ©2011 Cengage Learning

Community Goals Each community or region should consider its economic future Decisions include to: decline hold stable grow ©2011 Cengage Learning

Local government support is important along with its commitment to planning and infrastructure development. Community goals are usually developed through the general plan process. ©2011 Cengage Learning

The important factor in both population growth and per capita growth is an awareness of strength and weaknesses as a business location and a willingness to respond to opportunities. ©2011 Cengage Learning

Economic diversity of a community is an indicator of stability and adaptability ©2011 Cengage Learning

How to Study a Community Supply and demand factors have been traditionally used. Supply factors include an inventory of existing structures and their size, price, age and condition. Demand factors include population, both in total numbers and by age, education, and income. Important long-term influence on a community’s population and employment is its basic or export employment. ©2011 Cengage Learning

How to Study A Community Traditional Community Analysis Basic Employment Reviewed ©2011 Cengage Learning

Regional Economic Studies Economic Base Study Input-Output Study Gate keeping syndrome ©2011 Cengage Learning

There is a tremendous variety of source material available for persons wishing to understand a community. United States Census Bureau Regional and local planning agencies State Board of Equalization (sales tax) Chamber of Commerce Local and regional business publication Utility companies Colleges and universities ©2011 Cengage Learning