Chapters 12 and 13 Review!

1. Chapters 12 and 13 Review! The last review before THE review

2. World Cities • Definition: World cities are centers for the provision of services in the global economy • London, New York and Tokyo = 3 dominant • You could say that a dominant world city is kind of like a CBD of the whole world. Everything goes in and out of there. (okay, not everything) • Remember that they thought that communication and transportation advances would decentralize services, but in most ways it reinforced it.

3. More on business services • Remember that there are two parts to a business: the production aspect (factory) and the service aspect (in a building somewhere with businessmen) • The board of directors and other people make decisions about production, price, materials, etc. • Then you have other companies that offer services to the businesses like banks, insurance companies, stock market, lawyers, accountants, lots. Lots.

4. Levels of Business Services • World Cities • Dominant: Tokyo, London, New York. That’s it. • They have the major stock markets and a lot of financial support for businesses in the are. • Major: Chicago, LA, Washington, Brussels, Frankfurt, Paris and Zurich, Sao Paulo and Singapore (LDCs!) • Also contains major financial institutions • Secondary: Houston, Miami, San Francisco, Toronto, Bangkok, Bombay, Hong Kong, Manila, Osaka, Soul, Taipei, Berlin, Madrid, Milan, Rotterdam, Vienna, Buenos Aires, Caracas, Mexico City, Rio de Janiero, Johannesburg and Sydney

5. Levels of Business Services • Command and Control Centers • Headquarters for companies that provide services for large corporations • It would seem that a world city could be a command and control center as well. In fact, it would only make sense… right? • Specialized Producer-Service Centers • Narrow and highly specialized • Research and development • Motor vehicles in Detroit • State capitols that have a major university • Dependent Centers • Relatively unskilled • Resort, retirement, residential centers • Manufacturing • Military • Mining

6. Offshore Financial Services • Small countries/Microstates that offer financial services (basically banks) • Tax Benefits: If the money isn’t here in a U.S. bank account, technically they can’t do anything to tax it. These offshore companies don’t tax. It’s a way of “saving” money • Privacy: If you’re going to get sued, you can keep some of your assets a secret by putting them in these offshore institutions. That way you don’t lose everything.

7. Offshore Financial Services • It’s not technically illegal, but oftentimes people do use the OFS’s to hide shady business • Tax dodgers • Illegal schemes • Cayman Islands is probably the best example • Aruba, A bunch of island countries like Dominica, Granada, Marshal Islands, Tonga, The microstates in Europe- Andorra, Liechtenstein, Monaco

8. Offshore Financial Services • Sometimes there are good reasons • Living in an unstable country • To get around strict laws of trading in your own country • About 10 other reasons on Wikipedia! • Bad reasons include • Tax evasion • Creditor avoidance (but sir, I don’t have ANY money!) • Market manipulation

9. Peripheral Model • Three aspects • Inner city • Business/residential surrounding • Belt route connecting it all • Specialized node around called edge cities • Add figure 13-22 • http://www.martinsaphug.com/learn/units/urbanization/suburbs-in-north-america/

10. Peripheral Model

11. Make yourself a models study guide • Name of the model • Who is the master mind? • Is there a specific place they used when they made it? What are some examples? • What are the main points? • What makes it different from the rest? • What does it look like? • Central place theory • Gravity model • Concentric zone • Sector model • Multiple nuclei model • Peripheral model