18 - Service Sector and Semi-Periphery
ucla | GEOG 4 | 2023-12-06 01:45
Table of Contents
Background
- most core jobs are service sector as manufacturing is off-shored and outsourced
- service sector will eventually expand in terms of numebr of jobs as manufacturing jobs contract
- Clark’s Sector Model:
- Clark’s Sector Model:
- many services however are not mobile e.g. personal services
- some producer services are, esp those through telecomms: call centers, physician radiology, lawyers, etc. -> so some producer services will follow manufacturing out-sourcing
Off-Shoring White Collar Jobs
- Incentives
- labor-intensive producer services (call centers, back office, health services) done at a cheaper price
- tax advantages with tax havens and low tax jurisdictions (e.g. Ireland and Luxembourg compared to UK) -> attracts banking services and hedge funds
- special local economies in computer programming etc. require large number of engineers paid much less to handle back office (e.g., Bangalore)
- labor-intensive producer services (call centers, back office, health services) done at a cheaper price
