Earth Surface Processes

Multinational producer services, globalization, and global cities:a case study of the advertising sector in China

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  • Peking University, Beijing 100871, China

Received date: 2004-04-13

  Revised date: 2004-07-25

  Online published: 2004-10-15

Abstract

This paper analyzes how the globalization of producer services has reshaped China's regional markets and spatial structure from the perspective of advertising. Advertising is a highly internationalized and conglomerated sector. As a latecomer, the emergence of China's advertising after reform has occurred on a global stage. The major findings of this paper are: 1) As a result of the dominance of multinational agencies, China's advertising companies have been evolving into professional agencies. International standards and management practices have also been gradually adopted in China. That is to say, offices of multinational agencies in Beijing, Shanghai and Guangzhou have integrated China's advertising into a globalized institutional space over the past decade. 2) This spatial agglomeration of advertising in China's three major metropolitan regions has demonstrated the process of shifting from "serving markets and customers" to "the formation of a service market." 3) In terms of the production of advertising, China remains downstream in the global division of labor. However, with its large market and rising national brands, China may have increasing negotiation power, and, thus, push China's advertising industry into a position of greater prominence with respect to product placement and communicative strategies. 4) Due to the large scale of this national market, the advertising industry must develop localized media plans and promotional products when entering into specific regional markets within China. This has resulted in increasingly local versions of standardized global advertising products. In conclusion, this paper contributes to theoretical discussions of global city/world city networks. Through the development of producer services, we can see the specific routes through which globalization penetrates into localities. The entry of multinational businesses has compelled emerging markets to accept and adopt globalized institutions, procedures, and ideologies, and, furthermore, led to the integration of secondary regions and markets into this space. In short, global cities are mediating the globalization of metropolitan regions both institutionally and spatially.

Cite this article

PO Lan-chih, CHEN Shi-ning . Multinational producer services, globalization, and global cities:a case study of the advertising sector in China[J]. GEOGRAPHICAL RESEARCH, 2004 , 23(5) : 582 -592 . DOI: 10.11821/yj2004050002

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