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AP Human Geography

Chapter Twelve - Services

Seth Adler

Seth Adler
I. Where Did Services Originate?
a. Service Any activity that fulfills a humans want or need for money.
(1) In America, are in a service.
(2) In LDCs, less than are in a service.
b. Settlement A permanent collection of buildings where people live, sleep, and obtain services.

A. Three Types of Services
a. Contributes 2/3 of the GDP for MDCs, and less than in LDCs.
(1) Opposite of the primary sector in the industry.
b. The three types are consumer services, business services, and public services.

1. Consumer Services
a. Consumer Services Businesses that provide services to individuals.
(1) Retail, education, health, and leisure services.
(2) 44% of jobs in America.
Retail and Wholesale Services
a. 15% of US jobs.
b. Department stores, grocers, motor vehicle sales.
Education Services
a. 10% of US jobs.
b. 2/3 of educators are in public schools.
Health Services
a. 12% of US jobs.
b. Hospitals, doctors, nursing homes.
Leisure and Hospitality Services
a. 10% of US jobs.
(1) 70% of that is in restaurants.
(2) 30% is in lodging and entertainment.

2. Business Services
a. Business Services Services for other businesses.
(1) Professional, financial, and transportation services.
(2) 12% of US jobs.
Financial Services
a. 6% of US jobs.
b. FIRE Sector Finance, insurance, and real estate.
Professional Services
a. 12% of US jobs.
Seth Adler
b. Technical services (law, management, accounting, architecture,
engineering, design, and consulting) and support services (clerical,
secretarial, and custodial).
Transportation and Information Services
a. 6% of US jobs.
b. Transportation (trucking) and information (publishing and broadcasting)
and utilities (water and electricity).

3. Public Services
a. Public Services Services offered by the government.
(1) Security and protection.
(2) 17% of jobs in the US.
(i) - Federal government, - State government, and - Local

4. Changes in Number of Employees
a. All growth in the US has been in services, whereas primary and secondary industries
have declined.
(1) Within business services, jobs grew most rapidly in professional services
(engineering, management and law), data processing, advertising, and temporary
employment agencies.
(2) Grew slowly in finance and transportation because of improved efficiency.
(i) Less workers are needed.
(3) Within consumer services, jobs grew most rapidly in health care (hospital staff,
clinics, nurses), education, entertainment, and recreation.
(i) Even though more stores are opening, less workers are needed.

B. Services in Early Rural Settlement
a. Settlements probably originated to provide consumer and public services, not business

1. Early Consumer Services
a. The earliest settlements were made for consumer services, primarily, to bury the
(1) The nomads may have hired a priest to commemorate the dead.
(2) This would lead to building structures for the ceremonies.
(3) Religious buildings were the tallest buildings until skyscrapers.
b. Settlements were also made for the families so that the males could go and get a wife.
Seth Adler
(1) Homemade services, such as making of pots and tools evolved into schools,
libraries, and theaters.
c. Settlements also became manufacturing centers.
(1) People needed material items.
(2) Men gathered the materials, women performed the services.
(3) Services were often traded.

2. Early Public Services
a. Public services followed religious activities.
b. Settlements then became centers of military defense.
(1) They needed to protect their land and hunting game.
(2) Used walls.
(i) Good protection.

3. Early Business Services
a. Everyone needed food.
(1) Used to get food from hunting and gathering.
(2) Someone thought, why not bring food in for the hard times?
(i) This was the origin on transportation services.
b. Because not every group had access to all of the materials, they traded.
(i) Settlements served as a neutral point where several groups could come
together to trade.
(ii) Officials regulated prices and rules.
c. Overtime, settlements planted food and grew crops.

C. Services in Early Urban Settlements
a. Early settlements were rural because the economy was based on the surrounding

1. Services in Ancient Cities
a. Early settlements originated in Mesopotamia (Fertile Crescent).
(1) Diffused to Egypt, China, and South Asias Indus Valley.

- Earliest Urban Settlements
a. The oldest settlement is Ur in Mesopotamia (Iraq).
(1) Ur means fire.
(2) This is where Abraham lived in 1900BC.
b. Titris Hoyuk (in Turkey) is well preserved.
(1) It is very well laid out.
Seth Adler
(i) Houses were arranged in rectangular patters.
(ii) Walls and streets were planned out first.

- Ancient Athens
a. Settlements were first established in the Eastern Mediterranean about 2500BC.
(1) The oldest are Knossos (island of Crete), Troy (Turkey/Asia Minor), and
Mycenae (Greece).
(i) These are city-states.
b. Athens was the first city to reach a population of 100,000.
(1) Contributed to the development of culture, philosophy, and other elements of
Western civilization.

- Ancient Rome
a. Encouraged urban settlement.
b. Settlements were centers of administrative, military, and other public services.
(1) Trade was encouraged.
c. Some say the citys population reached a million.
d. With the fall of the empire in the 5
century, so did urban settlements.
e. The prosperity of the empire was because of secured trading in Rome.

2. Services in Medieval Cities
a. Urban life began to revive in the 11
century when lords established new urban
settlements. Citizens could own the land if they serve in the military.
b. Trade started to expand because they had more freedom.
c. European urban settlements were surrounded by walls, even though cannonballs could
get through.
d. Tourists do not get the full image of how crowded the settlements were because the
other buildings and walls were destroyed.
e. Most of the worlds largest cities were located in Asia.
(1) Include: Baghdad (Iraq), Constantinople (Instaninope, Turkey), Kyoto (Japan),
and Changan and Hangchow (China).
(2) London was the most populous city in the 1800s.
(3) Other highly populated cities prior to the Industrial Revolution are Agra (India),
Cairo (Egypt), Canton (China), Isfahan (Iran), and Osaka (Japan).

II. Where Are Contemporary Services Located?
a. Half of the worlds people live in rural settlements, the other in urban.

A. Services in Rural Settlements
Seth Adler
a. Clustered Rural Settlement A rural settlement where houses and farms are close together
surrounded by fields.
b. Dispersed Rural Settlement A rural settlement with isolated farms.
(1) North American rural landscape.

1. Clustered Rural Settlements
a. Included homes, barns, tool sheds, and other farm structures, plus consumer services
such as schools and shops.
b. Today, these are called a hamlet or village.
c. Each person living here gets a strip of land.
(1) Within 1-2km.
(2) Fragmented fields are encouraged so they are not as far.

- Circular Rural Settlements
a. These are a central space surrounded by structures.
a. Southern Africa.
b. Livestock in the center surrounded by houses.
a. Germany.
b. Center of houses and churches surrounded by gardens, then pasures, then

- Linear Rural Settlements
a. Buildings are clustered along a road, river, or dike.
(1) Better communications.
(2) St. Lawrence River in Quebec.
b. Narrow lots were arranged along the river
(1) 5-100 kilometers.
(2) Each son received half.

2. Clustered Settlements in Colonial America
a. Clustered settlements in the open in the New England territory is called a common.
b. Each villager owned several pieces of land so they could grow different crops. All
villagers had access to the woodlands on the outside.
c. Land was not sold, but a reward.
d. Favored for several reasons:
They typically traveled to the New World in a group.
The colonists wanted to live together to reinforce cultural traditions.
Seth Adler
a. Many came from the same church and town.
Defense against Indian attacks.

3. Dispersed Rural Settlements
a. More common in the American colonies.
(1) New England and Britain colonies were converted to dispersed
(2) Having several discontinuous lots was a disadvantage.
(i) Farmers lost time moving between lots.
(ii) More roads were needed.
(iii) Farmers were restricted.

- Dispersed Rural Settlements In The United States
a. The Middle Atlantic colonies were more heterogeneous.
(1) People came from Germany, Ireland, Holland.
(2) Most arrived individually.
b. Dispersed settlements are popular in the west because most of the people
settled there are from the Middle Atlantic.
(1) Land was cheap, so they bought a lot of it.
c. This was better for low populations but they ran out of land with more
people coming in.

- Dispersed Rural Settlements In Great Britain
a. Enclosure Movement The process of consolidating small landholdings into a smaller
number of larger farms.
(1) England, during the 18
(2) Great agricultural efficiency.
(3) Farmers who were kicked out went to urban cities because of the Industrial
b. The rapid growth had made it hard to define the boundaries of cities.

B. Services in Urban Settlements
a. Exceeded the population of rural settlements in 2008.

1. Differences Between Urban and Rural Settlements
a. Louis Wirth Said that an urban dweller lived differently than a rural dweller.
(1) 1930.
(2) He defined a city as having a large size, high population, and heterogeneous.
(3) Nearly everyone in an MDC is urban.
Seth Adler

- Large Size
a. In a rural settlement, most people know each other.
b. Having a large size in urban settlements makes it hard to have social bonds.

- High Density
a. The only way a large number of people can be supported in a small area is by
(1) Each person plays a special role.
b. More people means more competition.

- Social Heterogeneity
a. The larger the settlement, the greater variety in people.
b. A person has greater freedom in an urban settlement to peruse an unusual
occupation or sexual orientation.
(1) They might be noticed in a rural settlement.
c. People may also feel lonely because they are surrounded by different types of

2. Increasing Percentage of People in Cities
a. Urbanization An increase of the number of people in urban settlements.
(1) An increase in the number.
(2) An increase in the percentage.
(3) Ended in 1800 because not many more people can live in an urban area.
b. A large percentage of people living in urban settlements reflects a countrys level of
(1) MDC
(i) MDCs have a high population of urban dwellers because 200 years ago,
people migrated to the cities for work in factories.
(2) LDC 2/5
(3) Latin America is an exception.
(i) The urban percentage is like an MDC.

3. Increasing Number of People in Cities
a. Eight of the ten most populous cities are in LDCs.
(1) Buenos Aires, Delhi, Dhaka, Kolkata, Mexico City, Mumbai, Sao Paulo, and Shanghai.
(2) New York and Tokyo are in MDCs.
b. In the 1900s, after the diffusion of the Industrial Revolution, Europe and North America
had the top ten cities.
Seth Adler
c. There is an increase in LDCs because of migration and natural increase rates.

III. Why Are Consumer Services Distributed in a Regular Pattern?
a. Larger settlements have more consumer services than smaller ones.

A. Central Place Theory
a. Central Place Theory A theory that explains the distribution of services based on the fact
that settlements serve as centers of market areas for services.
(1) Larger settlements are fewer and farther apart than smaller settlements and provide
services for a larger number of people who are willing to travel farther.
(2) 1930s by a German geographer, Walter Christaller.
b. Central Place A market center for the exchange of services by people attracted from the
surrounding area.

1. Market Area of a Service
a. Market Area (Hinterland) The area surrounding a central place from which people are
attracted to use the places goods and services.
(1) Nodal region.
b. A circle is drawn around the service.
(1) The territory inside the circle is the market area.
(2) Consumers closer to the center are more likely to buy from there.
c. Geographers use hexagons instead of squares.

2. Size of Market Area
a. To determine the market area, geographers need its range and threshold.

- Range Of A Service
a. Range The maximum distance a person is willing to travel to use the service.
(1) Radius of the circle.
b. People go a short distance for daily activities, like groceries, but farther for
concerts and ball games.
(1) A convenience store has a small range and a stadium has a large range.
(i) McDonalds 5km
(ii) SteaknSkake 8km
(iii) Arena 100km
c. Retailers define their range as the maximum amount of distance that of their
customers are willing to travel.
d. Most consumers define range based on the amount of time it takes to get there.

Seth Adler
- Threshold Of A Service
a. Threshold The minimum amount of people needed to support the service.
b. Convenience stores appeal to everybody, whereas services appeal to certain people.
Movie theaters attract young people; chiropractors attract older people.
Poorer people are drawn to thrift shops; wealthier people go to department
Amusement parks attract families; night clubs attract singles.
c. If a good or service only applies to certain people, only they should be counted in
the range.

B. Market-Area Analysis
a. Retailers use market-area analysis to determine where the best location would be.

1. Profitability of a Location
(1) Compute the Range
a. Survey the people. Find out that the average person is willing to travel 15 minutes.
(2) Compute the Threshold
a. If a grocery store must sell $10,000 a week to break even, and people will spend an
average of $2 a week, then 5,000 consumers would be the threshold.
(3) Draw the Market Area
a. To find a location, draw an irregular circle with a radius of 15 minutes. If the
number of people inside is more than 5,000, it may be a good area. A store may
need a larger threshold and range is there are competitors.

2. Optimal Location Within a Market
a. The best location is the place that minimized the distance from the service to the largest
amount of people.

- Best Location For A Linear Settlement
a. The best place is where half of the customers are to the north and half are to the
b. Gravity Model A model that holds that the potential use of a service at a
particular location is directly related to the number of people in a location.
(1) The greater the number of people living in a place, the more potential
customers there are. A street with apartments containing 100 families are
better than a house with one family.
(2) The farther people are from a location, the less likely they will be to use it.

- Best Location In A Nonlinear Settlement
Seth Adler
a. Geographers still use the gravity model.
(1) Identify a possible location.
(2) Identify where everyone lives.
(3) Measure the distance from the possible site to every user.
(4) Divide each user by the distance.
(5) Sum up all of the results.
(6) Select a second possible location and repeat steps 2-5.
(7) Compare the results. The one with the higher scare is the better place.

C. Hierarchy of Services and Settlements
a. Small settlements are limited to consumer services because there are too few people to
support many services.
b. We spend as little time and effort to get consumer services. We only go to farther locations
if the prices are cheaper or if the item is not located closer.

1. Nesting of Services and Settlements
a. MDCs have numerous small settlements with small thresholds and ranges, and few large
settlements with small thresholds.
b. 4 levels of market areas: hamlets, villages, towns, and cities.
(1) Different size hexagons.
c. Walter Christaller Proved this idea in southern Germany.
d. Brian Berry Recreated this idea in the US Midwest.

2. Rank-Size Distribution of Settlements
a. Rank-Size Rule A pattern of settlements in a country such that the nth largest
settlement is 1/n the population of the largest settlement.
(1) The second largest city is half the size of the largest; the fourth largest city is
the size of the largest.
(2) Many cities in the US follow this rule.
(3) Graphed as a straight line.
(4) MDCs.
b. Primate City Rule A pattern of settlements in a country such that the largest city has
twice the population as the second-ranking settlements.
(1) LDCs.
c. Primate City The largest settlement in a country if it has more than twice as many
people as the second-ranking settlement.
Copenhagen, Denmark Primate city with 1 million inhabitants. The second
largest, Arhus, only has 200,000 instead of 500,000 like the rank-size rule.
Seth Adler
London UK Has 8 million, and the second largest city, Birmingham, has only 2
Bucharest, Romania 1.9 million inhabitants with the second largest city
having 315,000. It also has fewer settlements of 1,000 to 10,000 than

3. Periodic Markets
a. A periodic market is a series of individual vendors who set up one day to offer goods a
services, then are taken down at the end of the day.
b. Provides goods and services to people in LDCs and rural areas in MDCs.
(1) Offers fresh food.
c. The frequencies of periodic markets varies by culture.
Muslim countries: Once a week in each of six cities. None on Fridays.
Rural China: A three, 10-day cycle, according to G. William Skinner. First
city on days 1,4, and 7. Second city on says 2,5, and 8. A third city on days
3, 6, and 9. Three 10-day cycles fit in a month.
Korea: Two 15-day cycles in a month.
Africa: Varies from 3 to 7 days because of ethnicity differences.

IV. Why Do Business Services Cluster in Large Settlements?

A. Hierarchy of Business Services
a. Four levels of cities.
(1) World City
(i) Dominant
(ii) Major
(iii) Secondary
(2) Command and Control Center
(i) Regional
(ii) Subregional
(3) Specialized Producer-Service Center
(i) Functional
(ii) Government/Education
(4) Dependent Center
(i) Resort/retirement
(ii) Manufacturing
(iii) Industrial/Military
(iv) Mining

Seth Adler
1. Services in World Cities
a. Closely linked to the global economy because they are the center of flow of information.
b. There are law, banking, insurance, accounting, and advertising in these cities.
c. New forms of communications were expected to reduce the clustering of services in large
The telegraph and telephone in the 19
century and computer in the 20

century made it possible to communicate with coworkers and clients around
the world.
The railroad in the 19
century and car and airplane in the 20
century made
it possible to deliver people and products quickly.

- Business Services In World Cities
a. The clustering of businesses in world cities is because of the Industrial Revolution.
Modern industry is managed by large corporations in the world cities that make key
b. World cities offer many financial services to these companies.
c. Lawyers and accountant cluster in world cities to provide advice to major companies.
d. Advertisers cluster in world cities to help companies anticipate changes in the

- Consumer Services In Would Cities
a. There are a lot of wealthy people that live in world cities, so there are more luxury
b. World cities offers the most play, operas, night clubs, and restaurants.

- Public Services In World Cities
a. Most are capitals, so they contain mansions for the head of state. There are also
many embassies there.
b. New York is not a capital, but it has the UN headquarters.
c. Brussels is a world city because it is the center for EU activities.

2. Four Levels of Business Services

World Cities
o Dominant World Cities
a. London, New York, and Tokyo.
o Major World Cities
a. Chicago, LA, Washington.
b. Brussels, Frankfurt, Paris, and Zurich.
Seth Adler
c. Only Sao Paulo and Singapore are in LDCs.
o Secondary World Cities
a. North America Houston, Miami, San Francisco, and Toronto.
b. Asia Bangkok, Bombay, Hong Kong, Manila, Osaka, Seoul, and
c. Europe Berlin, Madrid, Milan, Rotterdam, and Vienna.
d. Latin America Buenos Aires, Caracas, Mexico City, Rio de Janeiro.
e. Africa Johannesburg.
f. Oceania Sydney.

Command and Control Centers
a. Contain headquarters of many large corporations, banks, insurance,
accounting, and law.
b. Important educational institutions are also located here.
c. Can be divided into regional and subregional centers.

Specialized Producer-Service Centers
a. Highly specialized services.
(1) One group specializes in the management and research and
development activities related to specific industries.
(i) Motor vehicles in Detroit.
(ii) Steel in Pittsburgh.
(2) Another group specializes as centers of government and education.
(i) State capitals that also have a major university.
(ii) Albany, Lansing, Madison.

Dependent Centers
a. Unskilled jobs.
b. Rely on decisions made in world cities.
o Resort, Retirement, and Residential Centers
a. Clustered in the South and West.
o Manufacturing Centers
a. Clustered in the old northeastern manufacturing belt.
o Military Centers
a. Clustered mostly in the South and West.
o Mining Centers
a. Clustered in mining areas.

B. Business Services in LDCs
Seth Adler
a. In the global economy, LDCs specializes in two types of business services:
Offshore financial services
Back-office functions

1. Offshore Financial Services
a. Small countries, usually islands or microstates provide services in the circulation of money.

a. There are low or no taxes on incomes, profits, and capital gains.
b. The US loses $70 billion in taxes a year because of these countries.

a. Bank secrecy laws help individuals evade discloser in their home countries.
b. Doctors accused of malpractice can keep some of their profits in offshore
centers for protection.

British Dependencies Other Than the Caymans
a. Anguilla, Montserrat, the British Virgin Islands, Isle of Man, and Jersey.

Dependencies of Other Countries
a. Cook Island and Niue (New Zealand), Aruba and the Netherland Antilles
(Netherlands), and the US Virgin Islands.

Independent Island Countries
a. Antigua, Bahamas, Dominica, Samoa, Tonga, and the Seychelles.

Other Independent Countries
a. Andorra, Liechinstein, Monaco, Belize, Panama, and Bahrain.

2. Back Offices
a. The second type of business service found in the periphery regions are back-office
functions, also called business-process outsourcing (BPO).
(1) Functions include processing insurance claims, payroll management, and transcription
b. Proximity of workers was important to assure close supervision and rapid turnaround of
c. Rising rents in downtown offices made many businesses more routine work to lower rent
buildings outside the central business district (CBD).

Seth Adler
Low Wages
a. Most earn only a few thousand dollars a year.
b. This is a lot of workers in LDCs so they will try and be educated.

Ability to Speak English
a. Only a handful of LDCs produce enough people that are fluent in English.
b. Major multinational companies such as American Express and General
Electric have workers in Malaysia, the Philippines, and India.
c. Knowing English is important for answering the phones and knowing
American preferences of music and movies.
d. Many workers must come early and stay late because it is daytime in
America and they rely on public transportation.

C. Economic Base of Settlements
a. Basic Industries Industries that sell their products to consumers outside of the
b. Nonbasic Industries Industries that sell their products to consumers inside of the
c. Economic Base A communitys collection of basic industries.
d. A settlements economic base is important because basic industries bring in money for
nonbasic industries.
e. A business is a basic economic activity is the percentage of people in the local economy is
higher than the national average.

1. Specialization of Cities in Different Services
a. Communities that have an economic base of manufacturing durable materials (steel,
cars) are located between Ohio and Wisconsin.
b. Communities that have an economic base of manufacturing nondurable materials
(textiles, food, paper) are clustered in the southeast, especially in the Carolinas.
c. Geographers O hUallachain and Reid have documented settlements that specialize in
particular types of services:
Business Services:
o General Business: Large metropolitan areas (Chicago, LA, NY)
o Computing and Data Processing: Boston and San Jose
o High-Tech Industries: Austin, Orlando, and Raleigh-Durham.
o Military Activity: Albuquerque, Colorado Springs, Huntsville, Knoxville,
and Norfolk.
o Management-Consulting Services: Washington D.C.
Consumer Services:
Seth Adler
o Entertainment: Las Vegas and Reno.
o Medical: Rochester, Minnesota.
Public Services:
o State Capitals
o Large Universities
o Military Bases
d. Northern and Eastern cities that were once major manufacturing centers have been
transformed into business service centers.
(1) Health industries are now more important than steel in Pittsburgh.
(2) Baltimore used to rely on fabricated steel products, but now is becoming a
center for biotechnology.

2. Distribution of Talent
a. Individuals with special talents are not distributed equally.
(1) They are attracted to cities with more job opportunities and financial incentives.
(2) According to research done by Richard Florida, talented individuals move
towards cities that offer more cultural diversity.
(3) Three measures of cultural diversity were used.
(i) Number of cultural facilities.
(ii) Percentage of gay men (Two men living in a house together).
(iii) A coolness index created by POV Magazine (Took the number of bars
and art galleries per capita).
b. Cities with high cultural diversity also had high percentages of talented people.
(1) Washington, San Francisco, Boston, and Seattle.
(2) Las Vegas was near the bottom.