Urbanization and the Multiplier Effect
When areas change from being rural (agricultural land or country) to urban (city), this
process is called urbanization.
Why would the urban population increase? Why would more people move into cities?
There are Five main reasons for urban growth:
1.
2.
3.
4.
5.
The city is manufacturing something (mass production of a good)
The city acts as a good transportation hub (connects roads to rail or rail to water)
The city acts tourist centre (a physical or human feature that attracts people)
The city provides government services (jobs paid for by tax payers)
The city is closely located to a natural resource that is being developed (minerals
found in the ground)
Growth of a city occurs in stages. It changes the economy and layout of the city. As a city
expands, it tends to offer more services, thus, increasing the economy. The multiplier
effect also increases, because as more services come to an area, more people are employed
and live in the area; therefore, these people use more services.
E.g. of the multiplier effect
Ford Plant Opens in
Oakville
(Basic Industry)
The employees
move to the
Oakville area in
order to work
More construction of
houses due to
increased population.
(Non-Basic Industry)
More grocery stores
and primary-level
services open in order
to deal with the
population influx.
(Non-Basic Industry)
More schools,
churches, banks, and
restaurants open.
(Non-Basic Industry)