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

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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’. Their economy was to provide raw materials to the north.  The post colonial era of the 1950’s saw the colonial bonds breaking and an expansion of slum and squatter settlements as indigenous people migrated to cities in search of employment.  Many cities in the south remain relatively poorer than those in the north.  

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Globalisation began with the emergence of capitalism as the dominant mode of production in the sixteenth century.  Since the late 1960’s, it has integrated the global city networks by breaking down trading barriers and improving communication. More recently, there has been a rapid growth in economic development causing great changes in economic restructuring.  There is a shift from international economy from being largely controlled by nation states to one that is dominated by TNC networks.  Globalisation has brought rapid growth in number, size and importance of TNCs.   Over half of the global trade is between or with TNCs. This ...

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