chapter 12 lecture contemporary human geography 3 edition

James Rubenstein

Chapter 12 Lecture

Contemporary

Geography

3rd Edition

Chapter 12:

Services &

Settlements

Marc Healy

Elgin Community College

James Rubenstein

12.1 Types of Services

• Consumer Services

– Nearly one-half of all jobs in the United States

provide a consumer service.

• Retail and wholesale—department stores, grocers

and motor vehicle sales and service, for example

• Health and social services—hospitals, social

assistance, and other health-care services

• Education services

• Leisure and hospitality services—restaurants,

bars, lodging, and the arts and entertainment

James Rubenstein

• Consumer Services

Leisure and Hospitality Services

Retail and Wholesale

Health and Social Services

Education Services

James Rubenstein

• Business Services

– The principal purpose of a business service is

to facilitate the activities of other businesses.

– One-fourth of all jobs in the United States are in

business services.

• Professional services—technical services and

support services

• Transportation and information services—trucking,

publishing, broadcasting, and utilities

• Financial services—finance, insurance, and real

estate (FIRE)

James Rubenstein

• Business Services

Transportation and Information Services

Professional Services

Financial Services

James Rubenstein

• Public Services

– A public service is to provide security and

protection for citizens and businesses.

– Most jobs are in federal, state, and local

governments.

James Rubenstein

• Changes in Job Sectors

– Between 1972 and 2013, all of the growth in

employment in the United States was in

services, whereas employment in primary-

and secondary-sector activities declined.

– The service sector was also the sector that

was impacted the most by the severe

recession that began in 2008.

James Rubenstein

• Changes in Job Sectors

James Rubenstein

12.2 Central Place Theory

• Central Place Theory

– Central place theory, first proposed in the

1930s by German geographer Walter

Christaller, helps explain how the most

profitable location can be identified.

James Rubenstein

• Market Area of a Service

– A central place is a market center where

people cluster to buy and sell goods and

services.

– To represent a market area (or hinterland) in

central place theory, geographers draw

hexagons around settlements.

James Rubenstein

– The United States can be divided into market

areas based on the hinterlands surrounding

the largest urban settlements.

James Rubenstein

• Range of a Service

– To determine the

extent of a market

area, geographers

need two pieces of

information about

a service: its range

and its threshold.

James Rubenstein

• Threshold of a Service

– The threshold is the minimum number of

people needed to support the service.

– Convenience stores and fast-food restaurants

appeal to nearly everyone, whereas other

goods and services appeal primarily to certain

consumer groups.

James Rubenstein

12.3 Hierarchy of Consumer Services

• Nesting of Services

and Settlements – Developed countries

have many small

settlements with

small thresholds and

ranges and far fewer

large settlements

with large thresholds

and ranges.

James Rubenstein

• Rank-Size Distribution of Settlements

– Many developed countries conform to the

rank-size rule, in which the country’s nth-

largest settlement is 1/n the population of the

largest settlement.

– Many less-developed countries follow the

primate city rule, in which the largest

settlement, called the primate city, has more

than twice as many people as the second-

ranking settlement.

James Rubenstein

• Rank-Size Distribution of Settlements

James Rubenstein

12.4 Market Area Analysis

• Profitability of a Location

– Geographers use the two components of

central place theory—range and threshold—to

determine whether a location would be

profitable. Here’s how:

• Define the market area.

• Estimate the range.

• Estimate the threshold.

• Predict the market share.

James Rubenstein

• Profitability of a Location

James Rubenstein

• Periodic Markets

– A periodic market is a collection of individual

vendors who come together to offer goods

and services in a location on specified days.

– Periodic market frequencies vary by culture:

• Muslim countries—Markets are once a week in

each of six cities, with no market on Friday, the

Muslim day of rest.

• Rural China—Markets operate in three locations

on alternating three day cycles, and no market on

the tenth day. Three cycles fit in a lunar month.

James Rubenstein

• Periodic Markets

– Periodic market frequencies vary by culture:

• Korea—Two 15-day market cycles fit in a lunar

month.

• Sub-Saharan Africa—Markets occur every 3 to 7

days. Variations in the cycle stem from ethnic

differences.

James Rubenstein

12.5 Hierarchy of Business Services

• Business Services in Global Cities

– Financial institutions

• Corporations obtain and store funds for expansion of

production in centers of finance.

– Headquarters of large corporations

• Shares of these corporations are bought and sold on

stock exchanges located in global cities.

– Lawyers, accountants, and other professional

services

• Global cities provide advice to major corporations

and financial institutions.

James Rubenstein

• Ranking Global Cities

– A combination of factors are used to identify and

rank global cities:

• Economic factors—number of headquarters for

multinational corporations, financial institutions, and

law firms that influence the global economy

• Political factors—hosting headquarters for

international organizations and capitals of countries

that play a leading role in international events

• Cultural factors—presence of renowned cultural

institutions, influential media outlets, sports facilities,

and educational institutions

James Rubenstein

– A combination of factors are used to identify and

rank global cities:

• Infrastructural factors—a major airport, health-care

facilities, and advanced communications systems

• Communications—Computers in the twentieth

century make it possible to communicate

immediately with coworkers, clients, and customers

around the world.

• Transportation—Motor vehicles and airplanes make

it possible to deliver people, inputs, and products

quickly.

James Rubenstein

• Consumer and Public Services in Global

Cities

– Because of their large size, global cities have

consumer services with extensive market

areas, but they may have even more

consumer services than large size alone

would predict.

James Rubenstein

12.6 Business Services in Developing

Countries

• Offshore Financial Services

– Small countries exploit niches in the

circulation of global capital by offering

offshore financial services.

• Taxes—Taxes on income, profits, and capital gains

are typically low or nonexistent.

• Privacy—Bank secrecy laws can help individuals

and businesses evade disclosure in their home

countries.

James Rubenstein

Countries

• Offshore Financial Services

James Rubenstein

Countries

• Business-Process Outsourcing

– Selected developing countries have attracted

back offices for two reasons related to labor:

• Low wages—What is regarded as menial and

dead-end work in developed countries may be

considered relatively high-status work in

developing countries.

• Ability to speak English—In Asia, countries such as

India, Malaysia, and the Philippines have

substantial numbers of workers with English-

language skills.

James Rubenstein

12.7 Economic Specialization of

Settlements

• Economic Base

– The economic activities in a settlement can be

divided into two types:

• A basic business exports primarily to customers

outside the settlement.

• A nonbasic business serves primarily customers

living in the same settlement.

– The economic base of a settlement is its

unique cluster of basic businesses.

James Rubenstein

Settlements

• Economic Base

James Rubenstein

Settlements

• Distribution of Talent

– Some cities have a higher percentage of

talented individuals such as scientists and

professionals.

– Richard Florida found that individuals with

special talents gravitate toward cities that offer

more cultural diversity, and developed a

“coolness” index to measure the desirability of

cities.

James Rubenstein

Settlements

• Distribution of Talent

James Rubenstein

12.8 Services in Rural Settlements

• Rural settlements are either clustered or

dispersed:

– A clustered rural settlement is an

agricultural-based community in which a

number of families live in close proximity to

each other, with fields surrounding the

collection of houses and farm buildings.

– A dispersed rural settlement is

characterized by farmers living on individual

farms isolated from neighbors rather than

alongside other farmers in settlements.

James Rubenstein

• Clustered Rural Settlement

– Circular clustered rural settlements

• In sub-Saharan Africa, the Maasai people, who are

pastoral nomads, build circular settlements known

as kraal.

– Linear clustered rural settlements

• Long-lot farms can be seen today along the

St. Lawrence River in Québec.

James Rubenstein

• Clustered Rural Settlement

James Rubenstein

• Dispersed Rural Settlements

– U.S. dispersed rural settlements

• A dispersed pattern developed because most

immigrants to the Middle Atlantic colonies arrived

individually rather than as members of a cohesive

group, as in New England.

– U.K. dispersed rural settlements

• In the United Kingdom between 1750 and 1850, the

enclosure movement consolidated individually

owned strips of land surrounding a village into a

large farm owned by a single individual.

James Rubenstein

• Dispersed Rural Settlements

James Rubenstein

12.9 Urban Settlements in History

• Consumer services—The first permanent

settlements may have been places for nomads to

bury and honor their dead.

• Business services—Early urban settlements were

places where groups could store surplus food and

trade with other groups.

• Public services—Early settlements housed

political leaders as well as military forces to guard

the residents of the urban settlement and defend

the surrounding hinterland from seizure by other

groups.

James Rubenstein

12.10 Urbanization

• Percentage in Urban Settlements

– In developed countries, 77 percent

live in urban areas, compared to

48 percent in developing countries.

• The major exception is Latin America,

where the urban percentage is

comparable to developed countries.

– The population of Earth’s urban

settlements exceeded that of rural

settlements for the first time in

human history in 2008.

James Rubenstein

12.10 Urbanization

• Percentage in Urban Settlements

James Rubenstein

12.10 Urbanization

• Number in Urban Settlements

– Developed countries have a higher

percentage of urban residents, but developing

countries have more of the very large urban

settlements

– Eight of the 10 most populous cities today are

in developing countries.

James Rubenstein

12.10 Urbanization

• Number in Urban Settlements

chapter 12 lecture contemporary human geography 3 edition

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