The debate about the effects of globalisation on cities is controversial. On the one
hand, scientists and journalists predicted “the end of the city” due to technological
change, especially in the area of telecommunications – implying that an increased
number of home-workers and the possibilities of video-conferences would make
calm suburbs or rural areas more attractive in comparison to a grid-locked and expensive
downtown area.1 Yet, whenever the abstract idea of globalisation is illustrated
in newspapers or TV, it is not a suburb or the green hills of Fife that are
shown. Rather, symbols of globalisation like Manhattan or Tokyo look more like
Ridley Scott’s “Nighttown” in Bladerunner. In contrast to the prediction of declining
cities, globalisation seems to boost the growth of cities in a way that many scientists
– influenced by the ideas of Alfred Marshall and Joseph Schumpeter started to write
about “global cities”, “world-cities” or “global city-regions”. Leamer/Storper called
global cities the “big winners” of the Internet Age.2 But what are exactly the effects
of globalisation on the functions and economy of cities? In order to examine these
effects, it is useful to address two questions: (1) why do firms choose cities as a location
in general? (section 2.1); and (2) how does globalisation affect this reasoning?
(section 2.2). Section 3 summarises the results.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Globalization and Cities
- Agglomeration and Deagglomeration Economics
- Effects of Globalization on Cities
- Globalization and Agglomeration
- Globalization and Deagglomeration
- Summary, Global Cities and Regions
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This essay aims to explain how globalization has affected the function and economy of cities. It investigates the reasons behind firms choosing city locations and how globalization alters this decision-making process. The essay explores the interplay between agglomeration and deagglomeration forces in the context of globalization.
- The impact of globalization on the location choices of firms.
- The role of agglomeration and deagglomeration economics in shaping urban growth.
- The effects of globalization on different functional sectors within firms.
- The relationship between globalization and the internal spatial structure of firms.
- The concept of vertical disintegration and its connection to horizontal reagglomeration.
Zusammenfassung der Kapitel (Chapter Summaries)
Introduction: This introductory chapter sets the stage for the essay by presenting a contrasting view on globalization's impact on cities. While some predicted the decline of cities due to technological advancements and the rise of remote work, the reality is that many cities, particularly global cities, have experienced significant growth fueled by globalization. The chapter introduces the central questions that the essay seeks to answer: why firms choose cities as locations and how globalization influences that choice. The chapter frames the following analysis, setting the context for the investigation into the effects of globalization on urban economies and functions.
Globalization and Cities: This chapter delves into the economic forces driving the growth and decline of cities, focusing on the contrasting concepts of agglomeration and deagglomeration. It begins by establishing the long-standing connection between economic activity and urban growth. The chapter details three main advantages of agglomeration: labour market pooling, better access to intermediate inputs, and greater technological spillover effects. It then explores centrifugal forces that counter agglomeration, such as high commuting costs, land rents, taxes, and external diseconomies like congestion and pollution. The chapter paves the way for examining how globalization interacts with these forces.
Effects of Globalization on Cities: This chapter analyzes the dual nature of globalization as both an opportunity and a challenge for firms. It introduces the concept of vertical disintegration, where firms fragment their production processes into specialized units, in response to increased market complexity and demand for customized products. The chapter highlights how vertical disintegration, coupled with a need for flexibility, leads to horizontal reagglomeration, as firms cluster to reduce transaction costs and access specialized labor pools. This demonstrates how globalization simultaneously promotes both the clustering and the decentralization of economic activities within cities.
Schlüsselwörter (Keywords)
Globalization, cities, agglomeration, deagglomeration, firm location, vertical disintegration, horizontal reagglomeration, economic geography, urban economics, flexibility, transaction costs, labor market pooling, technological spillover.
Frequently Asked Questions: A Comprehensive Language Preview
What is the overall topic of this text?
This text is a comprehensive preview of an essay examining the impact of globalization on the function and economy of cities. It explores how globalization influences firms' location choices, focusing on the interplay between agglomeration and deagglomeration forces.
What are the main sections covered in this preview?
The preview includes a table of contents, a statement of objectives and key themes, chapter summaries, and a list of keywords. Each section provides a concise overview of the essay's content.
What are the key themes explored in the essay?
The key themes include the impact of globalization on firm location decisions, the role of agglomeration and deagglomeration economics in shaping urban growth, the effects of globalization on various functional sectors within firms, the relationship between globalization and the internal spatial structure of firms, and the concept of vertical disintegration and its connection to horizontal reagglomeration.
What is the central argument or question addressed in the essay?
The essay aims to explain how globalization has affected the function and economy of cities by investigating why firms choose city locations and how globalization modifies this decision-making process. It specifically analyzes the interplay between agglomeration and deagglomeration forces in the context of globalization.
What are the key concepts discussed in the essay (as highlighted in the chapter summaries)?
Key concepts include agglomeration (the benefits of firms clustering together), deagglomeration (the forces pushing firms apart), vertical disintegration (the fragmentation of production processes), horizontal reagglomeration (the clustering of specialized units), globalization's influence on firm location choices, and the role of transaction costs and labor market pooling.
What are the main arguments presented in each chapter?
The introduction contrasts predictions of city decline with the reality of continued growth, highlighting the central question of firm location choices in a globalized world. The chapter on "Globalization and Cities" explores the economic forces behind city growth and decline, focusing on agglomeration and deagglomeration economics. Finally, the chapter on "Effects of Globalization on Cities" analyzes how globalization, through vertical disintegration, simultaneously leads to both clustering and decentralization of economic activity within cities.
What keywords are associated with the essay?
Keywords include Globalization, cities, agglomeration, deagglomeration, firm location, vertical disintegration, horizontal reagglomeration, economic geography, urban economics, flexibility, transaction costs, labor market pooling, and technological spillover.
What is the intended audience for this text?
Given the academic nature and structured presentation, the intended audience appears to be researchers, students, and professionals in fields such as urban economics, economic geography, and related disciplines.
- Quote paper
- Ansgar Baums (Author), 2005, Effects of Globalisation on City Regions, Munich, GRIN Verlag, https://www.grin.com/document/38958
