- Define world cities
World City: A large city that has importance to the operation of global systems of finance, trade, politics, communications, tourism and entertainment.
- On a map of the world locate example of world cities
- Describe and account for the spatial distribution of world cities
- Very few world cities are found in developing countries
- A few are found in NICs (Newly Industrialised Countries) - e.g. India, China and Brazil
- Most are found in developed countries because
- Centres for global banking and finance are often found in these economically developed countries
- Europe hosts the most world cities followed by North American and Asia. As a result the Northern Hemisphere has a larger concentration of world cities.
- With the exception of Johannesburg (and possibly Cape Town), there are no world cities in Africa.
- Some places have better locations for world cities:
- Singapore and Hong Kong are on major shipping routes and so large ports can be established which enable them to be a world city.
- Ulaan Bator is extremely isolated and thus finds it hard to make connections
- Many global cities are found on a river or by the sea but not all.
- World cities may also be found where there is cultural significance (e.g. old cities - Paris/London).
- In addition old cities have had longer to develop and forge relationships.
- Cities located near industries that have worldwide significance can benefit themselves
- Houston is where many large oil companies are based due to its proximity to the Gulf of Mexico
- As a result it is globally connected and is a world city
- Describe the nature and character of world cities and note the existence of a global hierarchy
- A variety of international financial services (insurance, finance, real estate, banking, accounting etc. )
- Deloitte, Bloomberg, Amex, JP Morgan, Goldman Sachs, Merrill Lynch, E*Trade
- Zurich, Julius Bauer, Credit Suisse
- Headquarters of several multinational corporations
- In 2000 17 of top 100 TNCs based in Tokyo
- Hitachi, Sony, Casio, Canon, Fuji Xerox, Fujitsu, Nikon, Olympus, Honda
- Nissin Foods, Mitsubishi, Sharp, Capcom
- Samsung, LG, Hyundai, Crown Confectionery, Kia Motors
- Existence of Stock exchanges and financial institutions
- NASDAQ, NYSE ($16.6 trillion market capitalisation) and many investment banks
- FTSE and accounting firms
- ASX ($1.7 trillion market capitalisation)
- Dominance of trade and economy of large surrounding areas
- Largest economy in Australia
- Hosted nearly half of all international visits (worth $5.9bn)
- Largest manufacturing hub in Australia
- 21st largest economy in the world (larger than that of Switzerland)
- 20% of Illinois firms based there
- In 2004 accounted for 19% of UK’s GDP (city centre), Greater London accounted for 30%
- Major Manufacturing centres with Port and container centres
- 441.5 million tonnes of cargo per annum handled
- 180 000 jobs
- 755 million tonnes of cargo per annum
- Also close to large manufacturing hubs
- Guangzhou a major manufacturing port nearby
- Not manufacturing but thoroughfare
- ½ of world’s crude oil passes through it
- Considerable decision making power on a daily basis
- Wall Street has global impact
- RBA makes many economic decisions on a daily basis
- Has strong political power
- Centers of new ideas and innovation in business, economics, culture and politics
- Fashion capital of the world
- Silicon Valley centre of technological progress
- Very progressive socially and politically
- Dominance of national region
- Physically quite a large city
- 42% of population of NY state for area only 0.6% of NY State size
- High percentage of residents in the service sector
- Over 70% of population involved in the tertiary sector
- Australia is high in general which leads to more world cities than other nations.
- High quality educational institutions
- MIT, Harvard (both top 5 universities. High rated public and private schools too
- Conservatorium, USYD, UNSW, Highly regarded schools and world leading education
- Multifunctional Infrastructure
- O2 Arena, Wembley, West End, QE Stadium, Wimbledon, Many EPL football stadiums
- Broadway, Madison Square Gardens, Yankee Stadium etc.
- Within a country a hierarchy develops related to the number and range of services and business it has
- National City (Sydney)
- Regional City (Dubbo)
- Hinterland Town (Wellington)
- Small Town (Peak Hill)
- Describe the role of world cities
- New York, London and Tokyo have a disproportionate concentration of top level headquarters
- 41 of top 100 TNCs have HQs in these countries
- 84 Forbes 2000 companies have HQ in Greater NY area
- 163 Forbes 2000 companies have HQ in Tokyo
- Main transactions in shares, loans and FOREX are dominated by these cities
- Stock Markets reflect dominance of these cities
- NYSE, Nasdaq, TSE and LSE are good indicators of global climate
- 2011 US Credit downgrading made All Ords drop 7%
- Centres of telecommunications and media
- London BBC, Sydney ABC NYC News Corp
- Technological strength hosting large airports
- World Class Infrastructure
- Fiber optic cabling and 4G networks
- S&P, Moody's and Fitch Group issue credit ratings
- Based in NY, Chicago and London
- San Francisco - Google and Apple
- Markets for a vast range of G+S
- Areas of accumulations of wealth and high purchasing power
- Champs Elysee, Fifth Ave, Castlereagh st
- Many world cities are ports (Sydney, Hong Kong, Singapore) and process large volumes of goods
- Technology rejuvenation. Amazon opening an office 3000 jobs
- Rejuvenation to become financial district. Now most expensive commercial real estate
- London’s 10 wealthiest boroughs have real estate value worth more than Wales, Ireland and Scotland combined
- Governments have pledged to give power back to smaller cities. So far nothing has happened.
- World cities are main routes for immigration so they have a variety of culture
- People perceive UK’s culture to be good.
- 44% of people who engaged with it are interested in doing business with the UK (vs 33% who haven’t)
- ¼ of all tourists come specifically for tourism (shows regional dominance 14% for rest of UK)
- NT Live spreads British theatre globally. Has a presence in 45 countries
- British Museum highly regarded. Loans out over 2000 objects annually.
- ⅓ of London’s population born outside UK.
- 300 languages spoken in London’s schools. 14 religions
- 300 theatres, 240 museums, 500 cinemas, 12 000 restaurants
- Historic buildings
- West End second most famous theatre district in the world
- 38% of inhabitants born overseas
- Areas designed for artists (1500 units of affordable living pledged)
- 5/10 most expensive stadiums ever built are located in NYC
- 2nd largest film centre in US
- NYC has a law that a proportion of money spent on public buildings must be spent on artwork in that building
- Broadway is one of the most iconic theatre districts in the world.
- Comic book invented in NYC
- Many art galleries.
- 130 languages spoken
- “Where East meets West”
- British rule has impacted much of the island’s traditions
- Cultural hotspots like Little India, Chinatown, and Arab St
- Known as one of the global food capital - chilli crab
- Large religious tolerance
- 30% of population non residents - 43% of total population born overseas
- Many festivals from all over the world - Diwali, Chinese NY, etc.
- Explain the phrase “global networks of world cities”. Give examples.
- A network is made up of hubs (cities) and nodes connected by linkages (transport, communications etc.)
- London, Tokyo and NYC tend to be key hubs.
- Account for 40% of all flights
- 50% of world trade
- 39% of FDI
- Enabled by transport system, telecommunication circuits and non-voice communications (like mail).
- Why do such networks exist and how do they operate
- All cities aim to position themselves better economically
- US cities overall are generally less globally connected than EU and Asia Pacific counterparts however they are connected with one another
- TNCs have created many networks
- HQs in dominant world cities but have operations all over the world.
- More important determinants of connectedness than geography.
- Europe is starting to become more connected to the rising banking and finance hubs in Asia Pacific than the US
- Reasons for limited links
- Timezones, trading issues, flights
- Three changes have led to the emergence of networks
- Manufacturing has shifted away from Europe and the US as companies look to cut costs
- Most moved to Asia → establish a network with them.
- Detroit and other manufacturing towns die
- 1970s deregulation of the world’s currencies meant that currencies could be traded against one another
- Banks established offices overseas which encouraged spread of networks.
- Technological developments.
- Interconnectedness of cities has been vastly increased due to internet and phones
- Money can be sent instantly meaning TNCs can split up their operations and goods can be delivered quickly.
- Explain and illustrate the relationship of dominance and dependence between world cities and other urban centers
Dominance: Ability to exert influence over other places
Dependence: A reliance on other places for economic or cultural purposes
World cities are dominant over National Metropolises which are dominant over Regional Centres for:
- Linking to the global market
World cities are dependant on other cities for:
- Goods as they don’t produce (esp. Manufacturing and primary production)
World cities are cities that have global and national significance. These cities have this significance due to two reasons. They are places with much historical background as centers of authority, and secondly they are places where there is a high concentration of Trans National Corporation headquarters (TNC HQ). These world cities dominate over smaller urban centers. These urban centers are dependant upon goods, services and profits received through the world cities.
World cities have so much cultural and economic authority in the 21st century because they are the home of the TNC HQ’s. An example in London, which is home to 64 of the world's top 500 companies. Also world cities have many wholesale banks, London is the world’s largest wholesale banking centre with 539 foreign banks. Tokyo has approx. 360 foreign banks and New York 360. Trade flows are dominated by world cities as most goods/goods receipts pass through world cities. The decision making power of world cities is influenced by their high number of TNC HQ’s, making many decisions that affect the world.
World cities are also centers of global media and communications networks such as New York’s NBC. World cities also offer the world’s best accounting, Law and advertising agencies, as well as the top education, entertainment, sporting venues, tourist venues and NGO head offices.
Urban centers are the markets for these world cities goods and services. Urban centers generally don’t have one good/service or another, and as a result need to visit a world city for these goods.
Windsor in Canada is much smaller and has fewer companies based and operating in it than its neighboring Detroit. People who live in Windsor who cannot obtain a place in the University of Windsor may traverse the bridge, and attended one of the Universities in Detroit. People in Windsor may also visit Detroit for better legal representation, or accounting, advertising, or a great many other services.
Even though Detroit is more dominant than Windsor, its building industry is dependant on Windsor for Lumber and Cement.
- How and why is the role of regional centres changing
Regional centres are growing as they absorb the decline in population and activities from small towns.
- Due to economic restructuring
Manufacturers and agribusinesses are relocating to regional centres as
- Lower operating costs (labour and land)
- Higher productivity
- Reduced staff turnover
- Environmentally sensitive operations can be located away from residential areas
- E.g. Buckman Laboratories (chemical manufacturer) relocated from Sydney to Wagga
Large regional shopping centres are built in these centres which increases their growth.
Telecommunication technologies are leading to the centralisation of business services
- Why are small towns in decline
Growing regional centres attract people and resources from small towns
- During 1980s and 1990s ¼ of rural bank branches closed
Towns are looking to attract people via tourism.
- Rural Show - strong community
- Won a $50 000 grant as part of a reinvigorated campaign
- Spruced up main road
- Offers subsidies for skilled workers and commercial rent
- Attempts to cash in on Gray Nomads
- “Camp Oven Festival attracts 100s of Caravans”
- Elvis Festival attracts $7 million PA into the economy
Cessnock, NSW and Mudgee, NSW:
- Wineries in the region attract people
CASE STUDY: WELLINGTON
- Marked reduction in services
- Essential services (medical and education) reduced due to public sector restructuring to be centralised in regional centres.
- Regional centres attract people due to greater variety and cheaper cost
- Decline in population - negatively impacts on the culture of the town
In 2008 a correctional centre opened to stimulate growth in the town.
5200 people live in Wellington.
Unemployment 13.5% (double national average) ½ population on welfare
Top 10 for domestic violence
“Ice Capital of Australia”
CASE STUDY: DUBBO
- Absorbed a decline in population from small towns like Wellington, Coonabarabran, Gulgong etc.
- Huge development in the region
- 2 new high schools
- Charles Sturt University
- Attracts people with Dubbo Zoo
- 36 000 people
- Average unemployment
- 47% of workforce employed in wholesale and retail activities
- Abattoir largest employer 700, followed by base hospital.
- Developments in transport and communications has meant Dubbo has absorbed people and businesses from nearby small towns.
TRENDS IN AUSTRALIA:
- Melbourne greatest increase (96000 people)
- Booming Coastal Towns (86% of Aussies live within 80km of coast or cities)
- Tweeds Heads (Fastest Growing Shire in NSW)
- Central Coast
- Coffs Harbour
- Optimal climate, cheap, coastal and has good facilities.
- As people are able to drive faster and longer they can drive to regional centres
- “Sponge Cities” absorb people
- Population up 20% in the last 10 years (5th Largest inland city)
- 22 primary schools, RAAF Base
- → new redevelopment in Waterloo, Redfern, Green Square
- Growing populations of satellite suburbs
- Campbelltown, Richmond, Penrith growing quickly.
- These are popular for retirees and younger households.
- Farms are now mechanised
- Agri Goods price falling
- Youth work and study in cities
- Loss of Banks, shops and services
- Burnie-Devonport, Rockhampton
- Geelong (Ford Factory) 2017 closure
- Queensland Nickel recently affected Townsville