A world city is a large city that has been outstripped its natural urban network and become part of an international global system. World cities have become the central connecting point for the multiplicity of linkages and interconnections that sustain the contemporary world economy, and its social and political systems. According to the 2004 GaWC studies world cities can be ranked based on their provision of ‘advanced producer services’ such as accountancy, advertising, finance and law. In 2008 the rankings according to the GaWC determined that London and New York were Alpha ++ cities whilst Sydney, Paris, Hong Kong and Singapore were Alpha +. These world cities are essential within the globalised world economy with their main role being as powerful centres of economic and cultural authority.
The economic authority of world cities can be attributed to there role as command points in the organization of the global economy. World cities are the headquarters for many TNC’s and large national corporations. For example 17 of the top 100 TNC headquarters are based in Tokyo. TNC’s have enormous influence on the global economy as 50% of world trade is between or within TNC’s thus playing a vital role as command points for their operations. For example, accounting firms Reloutte and Ernst and young are part of the ‘big power’ accounting firms both have their headquarters in London.
World cities are powerful economic authorities as they are key locations for a wide range of financial services. The world’s dominant stock exchanges are all located in world cities thus adding to economic authority. Wall Street in New York is an example of the largest stock index system in the world, which manages the Dow Jones as well of the NASDAQ, collectively holding trillions of dollars worth of investment. World cities are also centres for banking and associated...