Untitled Flashcards Set

Service Industry Growth

• Divided into tertiary (basic services), quaternary (information processing), and quinary (decision-making, research) sectors.

• Service industries now employ more workers than primary and secondary industries combined in core economies.

Deindustrialization Effects

• Core industrial regions transitioned to service-based economies.

• Some areas, like Detroit and Liverpool, faced economic decline and job losses.

• The Rust Belt in the U.S. suffered from factory closures and population decline.

• The Sun Belt attracted new industries due to favorable conditions.

Economic Disparities

• Only industrialized regions could deindustrialize, reinforcing global economic disparities.

• Despite losses, core regions still dominate global manufacturing.

• Service economy growth does not guarantee economic stability.

New Economic Patterns

• Service industries are less tied to raw materials but depend on market access and technology.

• Geographic Information Systems (GIS) help optimize business locations.

• Major corporations, like Wal-Mart, influence local economies by attracting businesses and service providers.

Locational Influence on Service Industries

• Tertiary services depend on consumer proximity.

• Quaternary services vary—some require physical proximity, others operate remotely.

• Many administrative functions (e.g., banking, insurance) relocate to lower-cost areas.

Case Study: Northwest Arkansas

• Wal-Mart’s success spurred regional economic growth.

• Corporations like Procter & Gamble set up offices nearby.

• Growth led to urban sprawl, higher property prices, and infrastructure challenges.

Help Desks and Quaternary Industries

• Call Centers: Many technical support centers are located in India and the Philippines due to:

  • High levels of college education.

  • Large English-speaking populations.

  • Affordable, skilled labor.

• Telecommunication Advancements: Technology allows businesses in the quaternary sector (e.g., research, consulting) to be located far from consumers. What's most important is infrastructure, skilled workforce, and favorable tax rates.

Quinary Sector and Its Locations

• Quinary Sector: Includes highly specialized jobs, such as researchers, executives, and government officials.

  • These jobs are typically located near government seats, universities, and corporate headquarters.

  • University Towns: Often chosen for educational purposes rather than commercial reasons. Examples include:

    • Champaign-Urbana, Illinois.

    • Norman, Oklahoma.

    • Eugene, Oregon.

  • Government Seats: Some capitals (e.g., Ottawa, Canberra) were established as political compromises.

• Research & Development: Universities are hubs for R&D activities, with specialized consultants and businesses often located near government centers.

High-Technology Clusters

• High-Technology Corridor: An area designated by the government to promote tech jobs with tax incentives and infrastructure.

• Silicon Valley: Example of a high-tech cluster in California, attracting companies like Cisco, Adobe, and Intel due to proximity to Stanford University and the availability of skilled labor.

• Technopole: A planned area for high-tech companies where businesses cluster, benefiting from each other's presence.

  • Route 128 Corridor (outside Boston) is another example of a high-tech hub.

• Global Spread of Technopoles: Examples include the Dulles Corridor (Washington, D.C.) and Telecom Corridor (Plano, Texas). Technopoles are often near airports to facilitate global connections.

• Location of High-Tech Firms: These firms don’t need to be near raw materials or particular markets, but they do need good transportation and communication networks.

Tourism Services

• Tourism Growth: Tourism has become the world’s largest service industry, driven by increased incomes and leisure time.

• Economic Importance: Tourism contributes over $2 trillion globally. Growth is especially prominent in East and Southeast Asia.

• Tourist Attractions: From theme parks like Disney to cruise terminals in Miami, many places have transformed to accommodate tourists.

  • Examples include Dubai with its indoor ski run and wildlife parks in Africa and South Asia.

• Economic Impacts: Tourism has both direct and indirect effects, employing millions globally. It will likely continue to grow, benefiting places that tap into the industry.

Place Vulnerabilities in a Service Economy

• Service Economy Vulnerabilities:

  • Tourism can be affected by economic downturns or natural disasters.

  • Outsourcing: Many jobs in office work are being outsourced to other countries.

  • Mechanization: Jobs in industries like travel planning or supermarket checkouts are being automated, leading to job losses.

• Globalization: Service economies depend on global connections for raw materials and large markets, linking regions across the globe.

• Financial Services Crisis: The 2008 financial crisis showed how interconnected financial markets can lead to global economic downturns.

  • Some financial services made risky decisions, causing widespread problems.

  • The crisis highlights the vulnerabilities of places in a service economy.

Human Development Index (HDI) and Development Goals

• HDI measures development by looking at more than just GDP—things like literacy and school enrollment also matter.

• The Millennium Development Goals (MDGs) focus on improving things like reducing hunger and gender equality.

• Progress has been made in reducing hunger, but it varies by region.

• Gender equality is improving in some areas, like women in government, but women are still more likely to have part-time jobs.

• HDI maps show a general idea of development across the world, but they don't capture differences within countries.

Development Models

• Development models suggest that all countries should follow the same path to development, but this may not work for everyone.

• Some countries might not develop the same way because of geographical context, such as political, cultural, and environmental differences.

• Rostow’s Modernization Model: Countries go through five stages of development:

  1. Traditional: Subsistence farming, little tech.

  2. Preconditions for takeoff: Leadership and changes in society.

  3. Takeoff: Rapid industrialization and growth.

  4. Drive to maturity: Technological advances and increased trade.

  5. High mass consumption: Service economy, high incomes.

• Critics say this model ignores the differences between countries and doesn’t consider the influence of global systems.

Geographical Context and Neo-Colonialism

• Geographical context matters for development—colonialism and global trade created a system where wealthier countries often benefit from poor countries’ resources.

• Neo-colonialism: Even after countries gained independence, the global economic system still keeps poorer countries dependent.

• Structuralist theories, like Dependency Theory, argue that poorer countries are held back by the economic systems set up by colonialism.

  • Dependency Theory: Poor countries rely on rich countries, and this limits their development.

  • Dollarization: Some countries, like El Salvador, use the US dollar instead of their own currency because their economy is tied to the US.

World-Systems Theory

• World-systems theory by Immanuel Wallerstein divides the world into core, periphery, and semiperiphery:

  • Core countries: Wealthy, with advanced technology and high wages.

  • Periphery countries: Poorer, dependent on core countries for trade.

  • Semiperiphery countries: Between core and periphery, they have some wealth but still depend on core countries.

• This theory explains how countries interact in the global economy and emphasizes the importance of geography, culture, and history in development.

• The power dynamics between countries shape their development, and not all countries can be wealthy at the same time.

Key Takeaways:

• Development is shaped by historical, political, and economic contexts, and it’s not the same for every country.

• Models like Rostow’s are outdated and don’t account for real-world complexities.

• Countries that were once colonies still face challenges from past dependencies (neo-colonialism).

• World-systems theory offers a more nuanced understanding of how global power affects development.

Lower Ninth Ward After Hurricane Katrina

• Destruction: Complete damage or ruin caused by the hurricane.

• Rebuilding challenge: The difficulty of restoring or fixing what was destroyed.

• Census: Official survey or study of the population and its characteristics.

Commodity Chains and Government Control

• Commodity chain: The series of steps a product takes from production to reaching the consumer.

  • Example: A T-shirt bought in Florida starts with cotton from Texas, goes to China for production, and is made by workers who earn very little.

• Government control: Rules or laws that affect trade, like limiting how many products come from other countries.

• Quota: A limit on the number of goods that can be imported.

• Subsidy: Financial support from the government to help industries or businesses.

Islands of Development

• Capital cities: Main cities where the government works and major businesses are located.

• Primate city: A city that is much larger and more important than other cities in the country.

• New capitals: Cities built or moved to reflect a change in leadership or national goals.

• Multinational corporation: A company that operates in many countries and runs businesses across the world.

• Islands of development: Wealthy or developed areas surrounded by poorer regions.

Growth in Poorer Areas

• NGOs (Non-Governmental Organizations): Independent groups that work to help people, usually in poor areas.

  • Example: Bangladesh has over 20,000 NGOs, but they don't always work as well as expected.

• Microcredit: Small loans given to poor people to help them start a business.

  • Microloan: A loan of a small amount of money.

• Empowerment: Giving people the ability or power to make decisions and improve their own lives.

Sustainability: The ability to maintain or continue a certain level of development without running out of resources.