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A world city is a large city that has outstripped its national urban network and has become part of an international global system. They have become powerful nodal points for the multiplicity of linkages, and interconnections that sustain the contemporary world economies, social and political systems. The result is a new world system of cities acting as ‘organising nodes’. In other words, they link regional, national, and international economies into the global economy, and this assists their main role as powerful centres of economic and cultural authority.
These world cities are dominated by TNC’s which are part of an international global system, and these corporations select regional cities as strategic centres from which to extend their influence within the global economy.
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The growth of world cities is facilitated by increasing telecommunication networks and improvements in technology, and the links of air transport between world cities. Hierarchical system There are 3 tiers of hierarchy in the dominance of world cities; dominant, major, and secondary.
Dominant world cities are the control and command centres of the global community and exercise most power over the global economy. One example of this is London, which is the headquarters of many IGOs and NGOs, and has 75% of 500 of the biggest companies in the world’s offices located in London. Major world cities link large national economies into the global system or important multinational roles, and one example of this is Sydney. Sydney has hosted major national sporting events, like the Summer Olympics in 2000. Secondary world cities bring important regional economies into the global system.
One example being Hong Kong, which is one of the world’s leading international financial centres, characterised by low taxation and free trade.
* Link to global networks The global web of world cities is important in stock markets and foreign exchange. Webs or global zones of world cities enable countries to have links with other world cities and regional centres. This diagram below shows the global zones/groups of world cities. World cities dominate trade and cultural information which is then relied on by other less dominant world cities and regional centres.
Dominance refers to the amount of control some urban places exert over other urban places and the special extent of that control. World cities dominate because of the concentration of control they have over a range of human activities. For example, they are important centres of corporate decision making and the creation of investment capital and centres of global transport and communications. Below world cities, each level dominates the one below, from zonal cities through to regional centres and to towns and villages. Dependence refers to the ways in which less powerful urban centres rely upon more powerful urban centres.
The dependence of world cities is greatest at the bottom of the global urban hierarchy. Less powerful urban centres increasingly depend upon the influence of the control by more powerful urban centres for; their material wellbeing, the goods and services they need, and investment in employment opportunities and infrastructure. The relationship of dominance and dependence is said to belong to the interaction between world cites and other urban centres, and the hierarchy of world cities indicates that there is a level of dominance emulating from New York, London and Tokyo over the other world cities.
Economic authority The economic authority of world cities includes their knowledge structures and their ability to generate, communicate and distribute beliefs relating to economic strategies and business climate. World cities are command points in the organisation of the global economy. They are the headquarters for many TNCs and large national corporations. These TNCs have an enormous influence on the global economy, and dominate decision making by not only deciding what they’ll produce, but also where production will take place.
They are also the headquarters for most of the IGOs that play a major role in the global economy. These include the World Trade Organisation in New York, which deals with the global rules of trade between nations. Also, 50% of all trade in America enters through New York, making it a strong competitor in the global market. Strategic economic decisions are created in world cities, and also legislation and governance decisions, like the ones on trade production, this giving world cities economic authority. World cities are home to specialist financial services, and are major centres for banking.
All major stock exchanges and future exchanges are located in world cities, and the largest banks in the world have their headquarters in world cities. New York for example, is the major city in the world for the trading of equities and government bonds, and London, has the largest foreign exchange in the world, with 31% of global foreign exchange traded through it. Specialist financial services give world cities economic authority, by how other world cities and regional cities rely on dominant world cities such as New York and London for the trade of stocks, currency and commodities.
World cities are home to TNCs headquarters. TNCs set up headquarters in world cities to have easy access to specialist financial services, and these headquarters control the trade and production which takes place in regional centres and the mega cities in developing countries. TNCs select regional cities as strategic centres form which to extend their influence within the global economy. As they grow, their dominance becomes stronger, and their influence over the economy is significant.
These mega cities in developing nations are often major centres of manufacturing and labour intensive work. They have a high population and unemployment rate, which leads to cheap labour, as companies are able to employ large amounts of people at a low cost. This benefit therefore makes mega cities attractive destinations for TNCs. New York for example, has the United Nations headquarters located within it, as well as Google, American Express, and J. P. Morgan, and London, has the headquarters of Citi Bank, and Goldman Sachs.
Therefore, TNCs influence in the global economy allows them to become chief competitors in the global market, and that developing nations are dependent on world cities for employment, and trade, and this gives world cities their economic authority. * Link to global networks The relationship of dominance and dependence belongs to the interaction between world cities and other urban centres. World cities have financial dominance in the production and distribution of goods and services on a global scale. They have a high income, and therefore are a significant market for goods and services which are produced in other urban areas.
Developing countries for example, have a high population and unemployment rate, enabling cheap labour, and therefore the hiring of a large amount of people at a low cost. This gives them a fast production rate, and therefore the distribution of goods and services at a global scale. Although fast production, these people are paid a very low amount but their goods sold at a high price. Developed countries count on the production and distribution of goods from these developing countries, and their high price is a positive to the economy. Cultural authority
Cultural authority refers to the key locations for which social infrastructure and networks, cultural activities and entertainment facilities are situated. World cities have a social infrastructure that enables interaction between people to exchange information face-to-face and improve global social networks. These world cities have office buildings, international hotels, conference centres, apartment blocks and prestige architectural design. New York for example, has the Waldorf Astoria Hotel, with its “peerless service and indulgent comfort.
This social infrastructure is supported by sophisticated transport and information systems, like London for example, which has the Eurail that connects London to Paris in 2. 5 hours. These aspects give world cities cultural authority by how people travelling throughout Europe have fast and easy travel options, and that TNCs need significant hotels/conference centres with world class facilities to attract people from specialised trips. Tourists are attracted to these world cities which boost the local economy, therefore providing employment.
World cities are centres for a range of cultural facilities and entertainment. They have theatres, large entertainment centres and sports facilities. They host major cultural and sporting events ranging from art exhibitions to tennis tournaments. London for example, hosted the London 2012 Olympic Games, and the Wimbledon tennis open, and is home to the West End. New York is also home to Broadway. World cities adopt their cultural authority through the way athletes, sponsors and spectators are drawn to world class sporting events in world cities, including the use of first class training facilities.
Actors and tourists are drawn to world cities to attend cultural events in Broadway and the West End, and many musicals have their world premiere in these world cities as well. * Link to global networks The dominance and dependence of cultures in world cities can spark trends in which travel through different cities around the world. These trends for example, can be fashion trends starting in Paris and following through to other countries, like Australia.
These world cities like Paris start trends through their dominance in the global hierarchy, and are passed on through news, magazines, radio etc. all around the world. Operation of global networks Air transport facilitates fast travel between world cities. New York for example, is home to JFK, which is the 6th largest airport in the world, and London has Heathrow, which is classified as the largest airport as measured by international passengers. This allows the fast transport of goods to different countries around the world, and facilitates the importing of goods into these airports. The operation of global networks is facilitated by telecommunications and improvements in technology.
Satellites for example, power telecommunications used to transfer emails, facilitate video conferencing, and phone calls, and so over time, the internet has made many aspects of these technologies easier and more efficient. Telecommunication transfers are dominated by world cities, and the fast and relatively cheap movement of skilled people and information throughout the world has become as important as the transport of goods. These operations have enabled the growth of world cities, and established stronger connections between global networks.
Operation of world cities in a global system (regional networks) The hierarchy of world cities indicates that there is a level of dominance emulating from New York, London and Tokyo over other world cities. World cities, whether they’re characterised as dominant, major or secondary, are sites of world accumulation. Dominant world cities; London, New York, and Tokyo, are the command centres for the global community and are major importers and exporters of goods and services. Major world cities; Sydney, Los Angeles, and Singapore, and they link large nation economies into the global system, and have multinational roles.
Secondary world cities; Hong Kong, Buenos Aires, and Chicago, bring important regional economies into the global system. New York is the dominant city for North America, London is the dominant city for Western Europe, and Tokyo is the dominant city for Asia Pacific. Major and secondary world cities are dependent on dominant world cities for financial and political services, and world cities provide the main facilities needed to help other cities. Their importance in the economy also makes them a crucial partner in the growth of major and secondary world cities. World cities are part of an international global system.
They are the centre of political power, world trade and communication, and a leader in banking and finance. They attract world stage, entertainment and sporting spectacles and are the headquarters of many non-government organisations (NGOs) as well as transnational corporations (TNCs). World cities are linked to a global network through the dominance they have over other urban areas, and the dependence others have on them. World cities provide employment, and specialist skills and services. Through technological advancements, all these aspects of world cities are enhanced and the operation of global networks can coexist efficiently.
The Rise of World Cities in Globalization.. (2016, Dec 15). Retrieved from https://studymoose.com/world-cities-essay
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