3.2.2 Section B: The Changing Economic World - The Changing UK Economy Flashcards
Primary sector:
Employment sector that includes farming, mining and other related activities
Secondary sector:
Employment sector that involves manufacturing
Tertiary sector:
Employment sector that includes service industries, such as health care, offices, financial services and retailing
Quaternary sector:
Employment sector that includes jobs in hi-tech industries, research, information technology and the media
Infrastructure:
The basic equipment and structures (such as roads, utilities, water supply and sewage) that are needed for a country or region to function properly
Manufacturing:
Making goods by processing raw materials
Freight:
The transport of goods in bulk by lorries, train, ship or aircraft
De-industrialisation:
The decline of a country’s traditional manufacturing industry due to exhaustion of raw materials, loss of markets and overseas competition
The decline of a country’s traditional manufacturing industry due to:
- exhaustion of raw materials
- loss of markets
- lack of investment - high labour costs and outdated industry in the UK overseas competition
- development of machines and modern tech which replace people’s jobs in modern industries
- other countries produce cheaper goods - China, Malaysia & Indonesia
How many jobs has the tin mining industry lost?
52,000
How many jobs has the farming industry lost?
142,000
How many jobs has the steel manufacturing industry lost?
315,000
How many jobs has the textile industry lost?
350,000
How did de-industrialisation impact the UK’s economy?
- Responsible for the explosion of the quaternary sector in the UK
- It has boosted world trade and enabled importing of more products to the UK, in turn contributing to the decline in UK manufacturing
Traditional industrial base:
Industries such as coal mining, engineering and manufacturing
How have the number of industrial jobs in the UK changed?
been declining for decades
Globalisation:
Globalisation ‘the growth and spread of ideas around the world’ (inc. culture, people, money, goods and information). It has been made possible by developments in transport, communications and the internet
Benefits of globalisation:
- economic growth - UK economy grows mainly due to more trade with the rest of the world
- cheaper goods and services - many items are cheaper because they are produced in places where people earn lower wages than the UK
- high value production - UK specialises in high-value manufacturing and services. Workers are better paid and UK earns more money
- migration - migrants come to the UK to fill jobs where we have a shortage of skilled workers e.g. healthcare
- foreign investment - foreign companies invest in the UK, bringing new ideas, technology and jobs
Negatives of globalisation:
- outsourcing jobs - jobs that used to be done in the UK can now be done elsewhere - this means loss of jobs or lower wages for those still working in the UK
- less manufacturing - more imports of manufactured goods, means fewer goods are produced in the UK, factories close and jobs are lost
- inequality - the gap between the low paid unskilled work and high paid skilled work is increasing, hard for low skilled workers to negotiate due to jobs being outsourced
Between 1945 - 1975 how did the UK gov policies affect the economy?
- UK gov created state-run industries e.g. the National Coal Board and the British Steel Corporation
- gov money was spent on ‘propping up’ declining UK industries
- ageing equipment outdated working practices and too many employees made them unprofitable
- the 1970s was a decade of strikes, social unrest, factory closures and power cuts
Between 1975 - 2010 how did the UK gov policies affect the economy?
- state-run industries were sold off to private shareholders to create a more competitive business environment - called privatisation
- many older industries closed down and many jobs were lost
- many new private companies brought innovation and change
- in the UK derelict industrial areas were transformed into gleaming new financial centres with offices and modern retail outlets
From 2010 onwards how have the UK gov policies affected the economy?
- since 2010 the gov’s aim has been to ‘rebalance’ the economy
- this has involved stabilising the secondary sector by promoting hi-tech industries
- there have been gov strategies to ‘level up’, by promoting opportunities to the less prosperous north of the UK, recent policies include:
- improvements to transport infrastructure e.g. Crossrail in London and the north-south ‘HS2’ railway
- more investment in manufacturing, especially high-tech engineering and electrical industries
- easier access to loan and finance, especially for small businesses
- encouraging global companies to locate within the UK, e.g. Japan’s Hitachi Rail Europe’s £82mn investment in north-east England to manufacture high—speed trains
Post-industrial economy:
A post industrial economy is one where manufacturing industry has been replaced by the service industry or tertiary jobs and the development of the quarternary sector
What sector of the UK economy is growing rapidly?
quaternary sector of the UK growing rapidly in 21st C