World cities are those cities with global economic, national and cultural significance & authority. Because of this, they are major centres for communications, banking and finance, HQs of NGOs such as TNCs as well as tourist meccas.

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EXAMINE THE ROLE OF WORLD CITIES AND THE OPERATION OF THESE CITIES WITHIN GLOBAL NETWORKS

        World cities are those cities with global economic, national and cultural significance & authority. Because of this, they are major centres for communications, banking and finance, HQs of NGOs such as TNCs as well as tourist meccas. The major roles of world cities are to provide global economic & cultural authority, and doing so they have developed strong and rapid increasing global networks have over time. The three major dominant world cities are London, New York and Tokyo and they posses all the characteristics mentioned above.

        The first major role of a world city is to provide global economic authority. It does this through 5 ways:

  1. Control centre of global economy: the size of a world city’s stock market is a good indicator of the city’s financial power in the global economy. For example, in ’93 the New York Stock Exchange traded $4221 billion, while the Sydney Stock Exchange traded only $204 billion. Thus, New York City provides a much more dominant role to the global economy than Sydney does.
  2. HQs for TNCs: many TNCs decide to base themselves in world cities. Doing so concentrates economic power.
  3. Major centre for advanced business services: these business services include accounting, banking, finance and legal services. A world city can be either a prime, major or minor global service centre for each service by having >8, >5 or >2 significant presences respectively. (Significant presence denotes a top 50 global firm for each service).
  4. Media and technology centres- TV, radio and newspapers are readily available in world cities in a vast variety.
  5. Markets for goods/services- world cities are where massive accumulations of wealth and high incomes are present, thus high-order consumer goods are sold here as there is a market present. This is shown through such places as 5th Avenue in New York City and Champs de Elysee in Paris where retailers offer very high priced goods. (47th street in NY has 80% of US diamond sales)
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The other major role of a world city is to provide a global cultural authority. Cultural authority is the associations between world cities and global culture. An example of a world city showing global sporting culture is the international TV/ Radio/ Internet coverage of soccer/rugby world cups, tennis/ golf opens as well as the Olympics via the globalisation of communications. Such cultural authority demands social infrastructure. This includes hotels, office blocks, airports, railways and entertainment, which allows people to make contact face to face & develop global social networks. Examples of such infrastructure include Wimbledon (London), Wembley (London) and Stadium ...

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