Territories in Globalization What impact does globalization have on the

organization of territories?

“The ultimate irony of a ‘outsourcing’ is that certain places have the function of organizing the rest…”

Source: Castells, 1998

Thomas Friedman argues that the expansion of trade, the internationalization of firms, the galloping process of outsourcing and the possibility of networking are creating a ‘flat world’: a level playing field where individuals are empowered and better off. But…not all territories have the same capacity to maximize the benefits and opportunities and minimize the risks linked to globalization. Numerous forces are coalescing in order to provoke the emergence of urban ‘mountains’ where wealth, economic activity and innovative capacity agglomerate. The interactions of these forces in the close geographical proximity of large urban areas give shape to a much more complex geography of the world economy.

Source: Rodriguez-Posea, 2008 “Mountains in a flat world: why proximity still matters for the location of economic

activity”

Territories and societies excluded from Globalization (periphery)

Territories integrated in Globalization (core)

Global city: a definitionA global city is a city generally considered to be an important node in the global economic system. The concept comes from geography and urban studies and rests on the idea that globalization can be understood as largely created, facilitated, and enacted in strategic geographic locales according to a hierarchy of importance to the operation of the global system of finance and trade.

What is a Global City?

4 main criteria:

–Economic–Political–Cultural–Infrastructural

Economic

• Contribute significant financial capacity/output to the city's, region's, or even nation's GDP• House major stock markets• Provide a variety of international financial

services• Appear near the top of cost of living

Political

• Active influence on, and participation in, international events and world affairs• Hosting headquarters for international

organizations• Large city proper• Quality of life• Expatriate communities

Cultural

• Renowned cultural institutions (museums, opera, ballet, orchestra, film festivals)•Media organizations• Sporting community• Educational institutions

Infrastructural

• Advanced transportation system (highways, mass transit, intl airport)• Advanced communications (fiber optics,

internet, wifi)• Health facilities• Prominent skyline

World map Ranking of Global Cities

Case Study: In what ways is New York a Global City?

Video: NY by Rick Burns PBS America 2’06

What makes NYC so global?1. The Sheer Numbers• Most populous city in the U.S. and one of the

most populous urban agglomerations in the world.

• As of 2012, the New York Metropolitan Area 19.8 million people

• 2012 population of 8,336,697 New York is the most densely populated major city in the U.S.

• 38% of New Yorkers are foreign born• As many as 800 languages are spoken in New

York = most linguistically diverse city in the world

2. Global Influence• Global power city, New York exerts a

significant impact upon commerce, finance, media, art, fashion, research, technology, education, and entertainment.

• The home of UN Headquarters, NY = important center for international diplomacy

• NYC has been described as the cultural capital of the world

3. Worldwide Symbol• The Skyline of New York City – First Skyscrapers

• First Modern City of the World– “Mad and Willful Humanity”

• Video: NY: Power and the People 23’07-31’12

Ranking of Top 5 Global CitiesGlobal world

rankEconomy Research and

Development budget

Cultural reach

Quality of Life

Environment Accessibility

1. New York 2 1 3 28 24 3

2. London 4 4 1 15 12 2

3. Paris 7 7 2 1 15 1

4. Tokyo 1 2 5 5 6 4

5. Singapore 5 8 4 25 11 7

Source: Mory Memorial Foundation, 2012

+demonstrated ability to attract capital, businesses, talent and visitors.+evaluating which cities are considered the most important to the world’s HNWIs (high-net-worth individuals, having over $25million of investable assets) in regard to: "economic activity", "political power", "knowledge and influence" and "quality of life".

Seth Pinsky on global cities index, outlook 6’06for NYC

• Bloomberg Video New York ranking as top global city

I. What is New York’s place in the world?

Very integrated city in globalization

A. Concentration of major economic actors = decisive factor in global integration of NY• 2 largest stock markets in world (NYSE,

NASDAQ)

Supremacy of NYC in global immaterial

flows:-internet

bandwidth capacity

-concentration of financial markets in stock market

values

• Concentration of major number of TNCs• 18 NY companies amongst the 139 TNCs

in U.S. (e.g. American Express, Colgate-Palmolive, Pfizer, Goldman Sachs, Time Warner, Tiffany & Co.)

• Major decision makers make NY top-ranking economic metropolis

The Megalopolis and

International Power

Turnover of Multinational Firms

in 2008

B. NYC enjoys all the advantages of integrating global network exchanges• 3 international airports (JFK, LaGuardia,

Newark)

JFK International

Airport

Newark International

Airport

La Guardia International

Airport

• several ports (NY and NJ harbors)

Video: America’s Front Door: NY NJ Harbor

Integration of Maritime and Railroad Traffic

C. NY top global ranking for economic power and research capacities• Silicon Alley (finance tech hub) See Video•Columbia University–5th for intl students in U.S.

•New York University–3rd for intl students in U.S.

International Students in New York City 2008

II. How is NY’s world power expressed?

A. NY is the center of economic globalization – new technologies & innovation

B. NYC = a cultural and political center– Tourism: Empire State Building, Statue of Liberty,

Ellis Island, Greenwich village, Chinatown– MOMA, the Met, Guggenheim, Times Square,

Broadway– 43% of population in 21st century born abroad– United Nations Headquarters

The central, international

functions of lower Manhattan

Education, culture, museumsReligious institutionsFinancePublic administrationtransportation

C. NYC = major interface in globalization– Atlantic Seaboard: connections to Europe & Asia

Reading Homework – Part 1• “The Global City: Introducing a Concept”, Saskia Sassen,

Brown Journal of World Affairs, 2005 (see link on blog)• “Globalization and World Cities” Geography 350,

Introduction to Urban Geography, Tyler Pearce and Elvin Wyly (see link on blog)

• “New York in the World: The Impact of the Global Economy on New York State and City”, Center for an Urban Future for SUNY Levin Institute, New York in the World Report, 2011 (see link on blog)

• Printed texts:– The Global City 2013– A global city rebuilt post 9/11– New York is World’s top city to do business– Silicon Alley