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- lack of investment - high labour costs and outdated industry in the UK overseas competition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
What % of the UK workforce works in manufacturing (secondary sector) and how does this compare to 1900?
- 10% compared to 55% in 1900
How has the UK economy changed over time?
- Primary industries have declined rapidly
- Secondary industries experienced a period of growth during the industrial revolution and has been in decline since the turn of WWII
- The service industries have grown massively in importance and is the dominant industry in the UK economy today
- A new sector of industries, the quaternary industries in which research and development takes place, has emerged and is growing rapidly
How are cities in UK given a score on their economic growth (outside London)?
- number of quaternary industries with potential for growth
- highly skilled workforce, educated to degree level or above
- new, start up businesses with potential to grow larger
- good transport connections inc. road, rail and air
What is often the focus of growth corridors?
- cities with large amounts of economic growth
Growth corridor:
an area that follows a major transport route and is seeing the biggest economic growth happen
Example of a growth corridor and what it is home to:
- major growth corridor is M4 growth corridor between Bristol and London
- home to hi tech industries
- produces as much economic output as Birmingham and Manchester combined
Why did the M4 become a growth corridor?
- good environment to live and work in, close to beautiful countryside
- industries located close to M4 and main London-Bristol railway
- land prices and rents are cheaper outside London
- near to universities for highly-educated workforce, expertise and research
- home to hi-tech industries
Examples of companies located on M4 growth corridor:
- Intel
- Microsoft
- Vodafone
What % of the UK’s GDP does the M4 growth corridor generate?
- 8% of UK GDP
- more than Birmingham and Manchester
Examples of jobs in IT:
- software designer
- software engineer
How has the development of information technology been one of the main factor’s in the UK’s move to a post-industrial economy?
- internet access enables people to work from home
- computers allow large amounts of data to be stored and accessed very quickly
- internet allows communication across world
How has development of IT affected the UK?
- many new businesses directly involved with IT, manufacturing hardware and designing software
- UK is one of world’s leading digital economies and attracts business and investment from abroad
How many people are employed in IT, software and computer services in the UK?
1.3mn
Examples of jobs in service industries and finance:
- doctor
- insurance
- fund management
- mechanic
- accountant
What does the finance sector involve?
- banking
- insurance
- securities dealing
- fund management
How have service industries and finance developed the UK’s post-industrial economy?
- grown rapidly since 1970s
- finance - UK is world’s leading centre for financial services
- City of London as UK’s financial centre
How much did the UK service sector contribute to the UK’s economic output in 2019 and how does this compare to 1948?
- 2019 - 81% of economic output
- 1948 - 46% of economic output
How much of the UK’s economic output financial services sector account for in 2019?
7%
What % of the UK’s GDP do financial services account for?
10%
How many people did the financial services sector employ in 2019?
1.1mn
What is the quaternary sector also known as and why?
- ‘knowledge economy’ as it involves providing information and the development of ideas
What % of the UK workforce works in the quaternary sector?
- approx. 15% of UK workforce works in quaternary sector
- though often hard to distinguish quaternary jobs from tertiary jobs
Examples of industries in research/quaternary sector:
- information technology
- biotechnology
- business and financial companies
- NHS
- Universities
- Ministry of Defence
- Forestry Commission
- Environment Agency
- British Antarctic Survey
- BBC
- Social market research for companies
- Pharmaceuticals company
- Engineering
- Charities (e.g. Cancer Research UK, Shelter, Oxfam)
Examples of jobs in research sector:
- scientists
- engineer
- market researcher
How has the research sector developed the UK’s post-industrial economy?
developed the importance of highly qualified people and role of universities in research and growth of the economy
How many people does the research sector employ?
- employs 250,000 highly skilled employees (2018)
How much money does the research industry contribute to the economy?
- over £6bn to economy
What % of the UK’s GDP does the research sector contribute to?
1.7% of UK’s GDP
How many people does the BAS employ?
500 highly skilled people based in Cambridge (UK), Antarctic and the Arctic
What does the BAS’s scientific research involve?
- involves use of ships, aircrafts and research stations
- its research in polar regions helps our understanding of the Earth and human impact on it natural systems
What topics is the BAS currently investigating?
- future changes in Arctic sea-ice
- impact of ocean acidification on ecosystems
- space weather research
What are the main differences between science and business parks?
- A science park is a group of scientific and technical knowledge based businesses located on a single site
- A business park is an area of land occupied by a cluster of businesses
- A science park is a planned industrial complex which contains quaternary companies while a business park can also contain manufacturing companies
- Science parks are knowledge and technical based and based on single sites, jobs usually in the quaternary sector
- Business parks occupy an area of land owned by multiple businesses
- Business parks may have jobs in the manufacturing (secondary sector) industry
Science park:
group of scientific and technical knowledge-based businesses located on a single site
How many science parks are located in the UK?
- 100+ science parks in UK - many linked to universities
Where is Cambridge science park located?
- 3km North of Cambridge city centre by J33 of A14
What transport links does Cambridge science park have?
- M11 offers quick route to London and beyond
- Stanstead airport is 30mins away down motorway - by train it is approx. 50mins away
What industries and work is found in the Cambridge Science Park?
- pharmaceuticals
- micro-electronics
How does Cambridge Science Park have access to a highly-educated workforce?
- close links with university
- allows researchers from there to work in tandem with researchers from the companies of the Science Park
What year was the Cambridge Science Park established?
1970
How many companies are located in the Cambridge Science Park?
130
How many employees are there in the Cambridge Science Park?
7250
How many acres is the Cambridge Science Park?
152
How many buildings does the Cambridge Science Park have?
58
How many foreign owned companies are located the Cambridge Science Park?
30%
Benefits of the Cambridge Science Park:
- The site has its own fitness club and gym
- It has the benefit of fibre optic broadband systems in operation
- There is an onsite nursery
- Recycling - recycling facilities are available
- Pumping out revenue of £37bn per yr
- The park has low density of buildings - the landscaping design was to create a peaceful and serene environment in accord with a location whose ideal is the pursuit of scientific research and development
- Electric pool bikes for FREE hire – allowing employees to use electric bicycles for journeys in and around the area or for quick visits into Cambridge city The Science Park is a committed member of Travel Plan+ (TP+) - promotes more sustainable travel to work
- The Park is committed to encouraging people to travel sustainably where this is possible; e.g. every new building on the Cambridge Science Park is provided with shower facilities and covered and lit cycle racks
- more than 22% of commuters cycle to work
Disadvantages of the Cambridge Science Park:
- city is overcrowded and congested - makes it difficult to drive or park
- house prices still rising making it expensive to live there
- road and rail routes need to be improved to speed up connections to other cities apart from London
How much revenue is the Cambridge Science Park producing per yr?
£37bn per yr
How will the arrival of AstraZeneca in the Cambridge Science Park affected the science park’s revenue?
arrival of AstraZeneca whose new HQ is currently being built in the city will add another £16bn onto the science park’s current revenue
What % Cambridge Science Park commuters currently car share?
11%
What % of Cambridge Science Park commuters cycle to work?
more than 22%
How many acres of the Cambridge Science Park contain park style landscaping and what does this provide?
- The 152 acre site benefits from 20 acres of park style landscaping which provides a central area of lakes, natural habitat, mature trees, shrubs and extensive grassed areas
- No building is permitted in this protected area
Business park:
an area of land occupied by a cluster of businesses
Where are business parks usually located and why?
- mainly located on edges of towns as:
- land tends to be cheaper than centre of town
- with more land available, may be possible to extend business
- access often better for workers and distribution, using by-passes and motorways, with less traffic congestion than in towns or cities
- businesses can benefit by working together
How big is Cobalt business park?
UK’s largest business park
What does Cobalt business park contain?
- several support facilities inc.:
- retail outlets and opportunities for recreation
- fitness centre, cycleways and green spaces
What main road is Cobalt business park close to?
- close to main A1 road
How long away from an International airport is Cobalt business park?
20mins away from International airport
What does Cobalt business park qualify for and why?
- north east of England suffered from economic decline as traditional industries have closed down
- businesses located in Cobalt business park therefore qualify for government assistance
In 2015 what company moved to Cobalt business park and what are they?
- the international energy company Siemens moved to the park
- it is one of number of well-known companies located in park inc. Procter and Gamble, IBM, EE and Santander
Footloose:
can locate anywhere in a particular country
What are the impacts of modern manufacturing on the physical environment?
- Aesthetics – manufacturing places can look very dull and uninteresting having a negative visual effect on the landscape
- Pollution – industrial processes can cause air and water pollution, as well as degrading the soil
- Waste – often taken to landfill and when in the ground they can pollute and harm the air, water and soil
- Transport – transporting raw materials and manufacturing products is usually by road, which increases levels of air pollution and damages the environment when roads are widened or new roads built
How can industrial development be more sustainable?
- technology can be used to reduce harmful emissions from power stations and heavy industry
- desulphurisation can remove harmful gases such as sulphur dioxide and nitrogen dioxide from power station chimneys
- stricter environmental targets put in place for industry on water quality, air pollution and landscape damage
- heavy fines imposed when an industrial pollution incident occurs
Quarry:
a place where rocks, sand, or minerals are extracted from the surface of the Earth
How can quarrying have harmful impacts on the environment?
- destroy natural habitats
- pollute nearby water courses
- scar the landscape
How is quarrying carried out now to reduce its impact on the environment?
- strict environmental laws on quarrying in UK
- sustainable development at heart of planning regulations and approval from mining and quarrying
- companies expected to restore or improve quarry after it has been used e.g.: landfill, agriculture, habitat creation, housing, food storage etc.
- whilst in operation, there are strict controls on blasting, removal of dust from roads and landscaping
- recycling is encouraged to reduce waste
Where is Torr Quarry?
- 1 of 8 limestone quarries on the Mendip Hills
How many people are directly employed at Torr Quarry?
over 100 people
How much money does Torr Quarry bring into the local economy?
£15mn
When did extraction at Torr Quarry begin?
1940s
What is the current output of Torr Quarry?
5mn tonnes
What is the limestone extracted from Torr Quarry used for?
limestone is used for buildings and aggregate (crushed up rock) for roads
How is Torr Quarry trying to be more environmentally sustainable?
- quarry being restored to create wildlife lakes for recreation and water supply - 80Ha have been landscaped and planted with grass and trees ———> natural habitats that were lost to extinction will now be restored, to encourage the biodiversity of the area and make the landscape more attractive to the local people
- characteristic limestone features will be created to make landscape look more natural ———> quarry will blend in with natural environment to prevent it becoming an eyesore, reducing complaints from locals - it also ensure that after quarrying ceases, it will not look as though human activity has been there
- site is part of Mendip Hills Living Landscape Partnership with Somerset Wildlife Trust - which aims to create biodiversity rich landscapes
- characteristic limestone features will be created to mimic natural limestone scenery ———> quarry will blend with natural environment to prevent it becoming an eyesore, reducing complaints from locals, it also ensures that after quarrying ceases it will not look as though human activity has been there
- strict environmental laws introduced - there is regular monitoring of noise, vibration, airborne emissions (dust) and water quality ———> monitoring allows prevention of pollution into surrounding landscape and ensures that quarrying companies are held accountable if they do not abide by strict environmental standards - also reduced chances of pollution affecting local populations
- in 2012 plane to deepen quarry was approved, extending operations to 2040- deepening quarry creates less environmental impact than extending quarry outside ———> extraction can take place without spoiling the landscape further, as they would be digging downwards, rather than outwards, this protects surrounding greenfield sites and habitats in vicinity of the existing quarry
Positives of quarrying:
- Quarrying creates jobs in areas where there are limited opportunities - over 100 people are employed at Torr Quarry
- It is an important part of the UK economy - £15mn towards the local economy each year
- Provision of construction materials approx. 5 million tonnes per annum
- Using rail as a transportation method is seen as being more environmentally sustainable for carrying bulk such as limestone and reduces emissions compared to using roads
- There is a huge demand for the products of quarrying, such as building stone and cement - linked to the demand for new homes in the UK
- Quarrying provides income to local councils through taxation
- Good communications are needed for transporting the products of quarrying - as a result many remote rural areas benefit from improved access
Negatives of quarrying:
- Quarrying is a heavy industry that creates noise and heavy traffic, which damages people’s quality of life
- Wildlife habitats are destroyed
- Valuable agricultural land is taken away
- Heavy traffic causes pollution and congestion on narrow country roads - the vibrations from heavy traffic can cause damage to buildings
- Quarries create visual pollution and tourists may be deterred by the scars on the landscape
- Landfill sites and waste tips need to be monitored to check for a build up of gases, such as methane
- Limestone is a non-renewable resource - so it can be argued that quarrying is unsustainable