BUSS1000 Lecture Notes - Lecture 9: Pricewaterhousecoopers, Ford Powershift Transmission, Gross Margin

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What is Urbanisation
- Cambridge Dictionary defines urbanisation as “the process by which more and more
people leave the countryside to live in cities”
- While Davis (2012) considers that urbanisation reflects the flow of population from rural
to cities, creating centres “centres of power and influence”
- The World Bank defines urbanisation as the process of … “migration from rural areas to
urban areas, absolute growth in the urban population (urban growth) and urban growth
that is faster than rural growth” … This is normally indicated as a … “percentage of a
population that is living in urban areas” compared to rural areas.
Can be both:
- Rich eg Sydney
- Poor eg Brazil- shanty towns
How do different countries define urban areas
- Algeria: groupings of 100 or more constructions, distant less than 200 metres from one
another are considered urban
- Botswana: Agglomeration of 5,000 or more inhabitants, where 75% of the economic
activity is non-agricultural
- Canada: Places of 1,000 or more inhabitants, with a density of 400 (or more) per square
kilometre
- China: According to the Regulation on the Classification of Urban/Rural Residence for
Statistical Purposes
- Mexico: Localities of 2,500 or more inhabitants
- United States of America: Agglomerations of 2,500 (or more) inhabitants, having
densities of 1,000 per square mile.
- Japan: City 50,000 or more inhabitants with 60 % (or more) of the houses located in the
main built-up areas and 60 % (or more) of the population engaged in manufacturing,
trade or other urban type of business
- India: Towns having 5,000 (or more) inhabitants, a density of not less than 1,000
persons per square mile or 400 per square kilometre, pronounced urban characteristics
and at least ¾ of the adult male population employed in pursuits other than agriculture
- Liechtenstein: Communes with 10,000 (or more) inhabitants
- Australia: Urban are considered those concentrations of urban development with
population of 10,000 people or more.
Cities and the sizes
The “United Nations” estimates that:
- 54.5% of the world’s population live in urban areas – as at 2016
- Overall growth is projected to add 2.5 billion people to the urban population by 2050
- 90% of the increase will be concentrated in Asia and Africa
- Nearly half of urban dwellers reside in relatively small cities of less than 500,000
- Cities with 500,000 to 1 million inhabitants tend to be concentrated in the global south
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- While nearly one in eight live in megacities of 10 million inhabitants or more
Why, where and speed of
urbanisation
Why urbanize
- Education and training opportunities eg university
- Employment opportunities eg lawyer
- Economies of scale result in better infrastructure in urban settings eg better roads
- Generally better health and social services in urban setting eg pathology services
- Generally lower poverty level in urban settings - but not always
Tokyo largest city- 38 million people
38 megacities- over 10 million
Growth in Asia + Africa
Africa is growing rural population
Process of urbanisation
1. Sanitation levels in urban areas are initially lower than rural areas
2. Higher mortality in urban area
3. Urban population sustained by rural to urban migration
4. Health care and sanitation improves in urban areas
5. Mortality rates decline in urban areas
6. Urban population expands due to combined effects of lower mortality rates couples with
rural to urban migration
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Population density
- Australia has 2 people km/2
- Impacts businesses
- How do we deal with customers? How to exceed expectation?
Effects of Urbanisation
Dr Sandra Peter (2016) states “The future is one of cities”, Urbanisation is rapidly accelerating.
Dr. Peter identifies the following characteristics in the world today:
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