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account for the development of the global eonomy and the associated network of cities

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Introduction

Account for the development of the global economy and the associated world network of cities. As the global economy changes over time, so has world network of cities shifted to accommodate these changes. Developments in the global economy is inextricably linked with the growth of urban places. The most recent economic development is the emergence of a new economy, globalisation. Globalisation and the growing influential power of transnational corporations (TNCs) have created a global hierarchy of cities with those in the developed world on top and the developing world beneath. Globalisation has also caused economic disparity between cities, which have resulted in the emergence of two types of cities-dominant and dependent. Finally globalisation has caused changes to role of regional centres, often leading to the demise of small towns. Throughout history, developments in the global economy have shaped the world network of cities. The first city emerged over 5000 years ago with urbanisations in Mesopotamia. The Industrial Revolution in the sixteenth century brought a revival of the significance of European cities. It allowed many of these cities to develop their economy before many in the southern hemisphere. In the colonial era, many cities of the 'southern' unindustrialised cities became colonies to the industrialised 'north'. ...read more.

Middle

Dominant world cities link all cities together as they are the control centres and command points of the global economy through finance and business. Hence any decisions made can have a flow on effect across the world due to the close links between the world network of cities. The cause of dominant world city's importance derives from the fact that many TNC and large national corporation head quarters are located in and/or originated from these cities. TNCs have enormous influence on the global economy because they often dominate government decision-makings. This is due to the fact that TNCs not only decide what they will produce, but the location of production. This decision influences the economy of the city through the amount of employment, infrastructure and technology that accompanies the set up the production workshop. TNCs have caused a spatial shift in cities, as manufacturing plants are relocated to places where production cost are low or being decentralised into component parts to specialised areas. For instance the white goods company Electrolux, whose head quarter is in Sweden, made decisions in 2004 to cut its workforce by 20% as the company decided to move some of its operations to low cost Asian locations. ...read more.

Conclusion

The lack of world cities in Africa reflects the continent's marginalisation within the world economy. The spatial distribution of world cities also reflects the north-south divide. Globalisation has also caused changes to the role of regional centres and rural towns. TNC's strategic choice of locations to extend and maximise their influence within the global economy have lead to the growth of metropolitan and regional centres. Regional centres are attracting increasingly concentrated amount of control because they offer a concentration of industry and the availability of more options in areas such as lifestyle, employment and services. As these places become more important, there is a general decline in small towns. This means that it is harder for small towns, with limited functions and a small population, to survive. Developments in the global economy have shaped the world network of cities. The most recent economic development is the emergence of a new economy, globalisation. The growth of TNCs as a result of rapid globalisation has created a global hierarchy of cities as well as economic disparities between the cities of the developed and developing world. This in turn, has caused the emergence of dominant and dependent cities. Finally, globalisation has caused changes to the role of regional towns, often leading to the demise of small towns. ...read more.

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