UNIT 2: THE GLOBAL ECONOMY
LESSON
2:
GLOBAL
CITY
Presented by Mark Keiley Delos Santos
INTRODUCTION
Globalization and technology advancement have
GLOBA made signifi cant impacton various cities around
the world. Global city is a contemporary concept
L CITY and has revolutionizing eff ort on the way
economist
view.
GLOBAL CITIES
Globalization and technology have
transformed many cities worldwide. A
global city is a highly urbanized area that
thrives with advanced technology and
strong communication networks. These
cities serve as economic superpowers and
knowledge hubs, playing a crucial role in
the global economy.
WHAT IS A GLOBAL CITY?
A global city is not just about
population size, it is about its infl uence
in• Drive
business, innovation, and
the global economy.
connectivity.
• Host headquarters of These cities:
multinational companies and global corporations.
• Have excellent transport networks (airports, seaports, railways) that
attract businesses and tourists.
• Serve as cultural centers with museums, theaters, sports events, and
world-class restaurants.
• Are led by visionary leaders who connect local politics with global
policies.
SASKIA SASSEN’S DEFINITION
OF GLOBAL CITIES (1991)
S ASKIA S ASSE N IDENTIFIED GLOBAL CITIE S IN FIVE
W AY S :
It is a key location for It is a site of It is highly
fi nance and specialized production, including concentrated
service fi rms which the production of command points in the
have replaced innovations in leading organization of the
manufacturing as the industries. world economy.
leading economic
services
SASKIA SASSEN’S DEFINITION
OF GLOBAL CITIES (1991)
S ASKIA S ASSE N IDENTIFIED GLOBAL CITIE S IN FIVE
W AY S :
Global cities are major
It is where products
nodes in the
and innovations are
interconnected systems
produced. of information and
money, and the wealth
that they capture is
intimately related to the
specialized businesses
that facilitate those
fl ows
ATTRIBUTES OF
GLOBAL CITY
1 SEATS OF 3 CENTERS OF
ECONOMIC POLITICAL
POWER
They dominate INFLUENCE
They host embassies,
international trade, consulates, and
fi nance, and industry. international
organizations.
2 CENTERS OF 4 CENTERS OF
AUTHORITY HIGHER
They infl uence global LEARNING
They have top AND
decision-making and
policies.
CULTURE
universities, research
centers, museums, and art
hubs.
TOP 10
CITIES
THE GLOBAL
CITIES INDEX
At Kearney list, developed in conjunction with the
Chicago Council on Global Aff airs, Global Cities
index uses criteria across fi ve dimensions:
a. Business Activity – Measures corporate headquarters, fi nancial services,
international
trade, and capital markets.
b. Human Capital – Considers population diversity, education levels, and
presence of
international students.
c. Information Exchange – Evaluates access to global media, internet
connectivity, and
news infl uence.
d. Cultural Experience – Assesses the number of cultural venues, international
events, and
CHALLENGES OF
GLOBAL CITY
I N E Q U A L I T Y & P O V E RT Y TE CHNOLOGICAL DE PENDE NCE
The wealth gap between rich and poor is Over-reliance on technology creates
wide. risks.
E N V I R O N M E N TA L T H R E AT S GOVERNANCE COMPLEXITY
Pollution and climate change aff ect Managing diverse populations and
sustainability. industries requires strategic leadership.
R E S O U RC E S C A RC I T Y
High demand leads to shortages in
water, food, and energy.
IMPACT OF GLOBAL
CITIES ON THE WORLD
1. Cultural Infl uence – Global cities shape trends in fashion, music, movies, and art.
(e.g., Hollywood in Los Angeles, K-Pop in Seoul).
2. Financial Power – The world's largest stock exchanges are in global cities (New
York, London, Hong Kong).
3. Diplomatic Importance – Global cities host major international organizations.
4. Technology Hubs – Many global cities are centers for startups and innovation (e.g.,
Silicon Valley in San Francisco, Shenzhen in China).
SUMMA
RY
The concept Global city drives the global economy, they are economic
power houses with head offi ces of multinational institutions, business
services,legal and consulting expertise, exchanges banks and global
corporations on its territory.
Global city has 5 dimensions namely:
• BUSINESS ACTIVITY
• HUMAN CAPITAL
• INFORMATION EXCHANGE
• CULTURAL EXPERIENCE
• POLITICAL ENGAGEMENT
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