New global politics largely influence global cities. They have much political power which attracts foreign investors (Sassen 268). They are home to global headquarters of major foreign organizations. Global cities play an important role in the development of global civil society as they can influence and attract international investors (Sassen 273).
Political economy approach to the understanding of urban growth and development
Political economy examines the processing of material exchange and production shape. It influences urban development as it is an instrument in the increase of wealth with all the inequality and power that emerges (Logan et al. 50).
The difference between the new (neoliberal) form of capitalism and Classical Liberalism
Classical liberalism refers to the political philosophy that holds the priority of maximizing individual liberty while restricting the application of coercion and force to achieve this. It encompasses political, economic, and social aspects, describing the role and the basis of the government and the society. On the other hand, neoliberal is a modern take on classical liberalism whose main focus is markets. This means freeing up the markets, ending protectionism, and deregulation. A neoliberal form of capitalism is more about neoclassical economics, so it is a set of ideologies about how a free market can be maintained or achieved while classical liberalism has to do with political philosophy.
Producer Services
These services play a role in overcoming the data friction emerging from the technology specialization process. They allow a stable rate of development and subsidies to the services can act in stimulating the rate of economic growth (Goe 118). A significant factor that has led to the growth of these services is externalization or outsourcing of the producer service function (Goe 118).
Difference between Industrialized Cities and Pre-industrialized Cities
A pre-industrialized city is a city that emerges and grows not because of industrialization but as a result of other factors. They emerge as marketplaces, and their growth is not related to the industrial revolution, for example, Benaras city (Huang 1). On the contrary, an industrialized city emerges as a result of industrialization, for example, Jamshedpur city (Huang 1).
Works Cited
Goe, Richard. "The growth of producer services industries: Sorting through the externalization debate." Growth and Change 22.4 (1991): 118-141.
Harvey, David. A Brief History of Neoliberalism. New York: Oxford University Press, 2005. Print
Huang, Chien-Yu. The Impact of Informative Producer Services on Economic Growth: Theory and Evidence from US Manufacturing Industries. Working Paper, 2012.
Logan, John R., and Harvey Molotch. Urban Fortunes: The Political Economy of Place, With a New Preface. Univ of California Press, 2007.
Sassen, Saskia. Cities in a world economy. Sage Publications, 2011.
Tasan-Kok, Tuna, and Guy Baeten. Contradictions of Neoliberal Planning [recurso Electrónico]: Cities, Policies, and Politics. Paises Bajos: Springer Netherlands, 2012. Internet resource.
