The chapter by Sassen on global cities discusses what
specifically defines a global city and how these features of global cities
work. She outlines 7 main hypotheses for the global city model, in summary they
are;
- Geographic location and distribution; where the more dispersed the more complex a firms functions are.
- Firms outsource their functions to other service firms, for example; accounting, public relations etc.
- Agglomeration economics; service groups are involved together: ‘mix of firms, talents, and expertise form a broad range of specialised fields makes a certain type of urban environment function as an information centre.
- Signficant amount of heatquarters of firms
- Provides a global service or a partnership which strengthens cross border transactions and networks
- The amount of professionals and proven talent
- Firms that need to operate- society, businesses and economies need their services
Evidently from these hypotheses, technology and the existence
of transnational corporations define global cities. The growth of networks
between global cities is dependent on political, cultural, social and criminal
factors. The article then goes on to discuss worldwide networks and central
command functions, and expands on the importance of headquarters in global
cities as well as stock markets, agglomeration economics and trade.
The next section discusses the impacts of new communication
technologies on centrality. There is three assumed points about centrality and
technology. Firstly there is no longer a distinct correlation between
centrality and geographical centres like CBDs and downtown. Second, the centre
can extend to form a grid due to expansion like in Paris and third, these
centres are fundamental to economic and trading. Other than these listed above,
technological communications may also cause inequality between global cities
where there are larger economic and social structures.
The final section
discusses the global city as a centre of political power, and when this centre
does not possess official political power, corporations hold an even greater
power.
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