1. Why Do Business Services Cluster in Large Settlements Chapter 12: Services Key Issue 4

2. Business in World Cities Types of Business in WC Business Services – Cluster in WC’s because of Industrial Revolution – Financial and professional services (& headquarters) Consumer Services – Lg. market with lots of people – Leisure & luxury activities Public Services – Often capitals or home of regional government – Ex. NY home of UN Types of World Cities Dominant: London, New York, & Tokyo – Major world stock exchanges – High concentration of business services Major: 3 US cities (ex. LA), 4 European cities (ex. Brussels), & 2 LDCs (ex. Sao Paulo & Singapore) – Headquarters of major corporations Secondary: 4 US, 7 Asia, 5 Europe, 4 in Latin America, & 1 in Africa & Australia (each) – Major industrial and economic regions

3. Hierarchy of Business Services Four Levels of Business Services – World Cities (previous slide) – Command & Control Centers Headquarters of major corporations – Specialized-Producer Service Centers Ex. Detroit with automobiles – Dependent Centers Resort, Retirement, & Residential Manufacturing Military Mining

4. Business Services in LDCs Offshore Financial Services – Taxes – less tax – Privacy – can’t get at $ in case of legal trouble – British Dependencies (not Caymans) – Dependencies of other countries – Independent Island Countries – Other Independent Countries Back Offices (Business-process Outsourcing) – Low wages Good wages for LDC (thousands of $) Much lower than comparable work in MDCs – Ability to speak English India, Malaysia, & Philippines (affect of colonialism)

5. Economic Base Settlements Basic industries – the industries/business that the area’s economy is based on – The success of this industry influences the economic health of the entire area – Ex. In the Lakeland area: logging & tourism are basic industries – Can identify by a greater number of people working in industry than in the general US Nonbasic industries – Consumer services provided to support the population working in the basic industries – Ex. Electrician, plumber, school, local government, etc. Economic base – the basis for a local economy

6. Economic Base Settlements Specialization of Cities in Different Services Each type of basic activity has a different spatial distribution – Mining by mineral deposits – Durable manufacturing (Midwest) – Nondurable manufacturing (SE) Model started based on manufacturing – Now adapted to include growing service industries – Old manufacturing areas turning to service Distribution of Talent According to Richard Florida: – Talented people are attracted to diverse cities (with employment opportunities) – Talent = degrees, professional jobs, & science & engineers – Diversity = cultural facilities, percentage of gay men, & coolness Positive correlation between talent and diversity