Case study: Economic Futures in the UK

Question 1

describe how the economic structure of the UK has changed

Answer 1

Before 1800 most people in the UK worked in the farming, mining or related activities- primary sector. But the industrial revolution of the nineteenth century changed all that. Many people moved to towns and cities for work- making steel, ships or textiles (secondary sector). In the last few decades, it all changed again, with a big shift to jobs in the tertiary sector- healthcare, offices, financial services and retailing. Most recently, the quaternary sector has developed with jobs in research.

Question 2

what are the causes of economic change in the UK?

Answer 2

-de industrialisation
-globalisation
-government policies

Question 3

define de-industrialisation

Answer 3

the decline in secondary industry and the subsequent growth in tertiary and quaternary employment

Question 4

why did de-industrialisation happen?

Answer 4

-machines and technology have replaced many people in modern industries
-other countries can produce cheaper goods because labour there is less expensive
-lack of investment, high labour costs and outdated machinery made UK products too expensive

Question 5

what type of industries were lost to de-industrialisation?

Answer 5

-coal mining
-engineering and manufacturing
-instead the UK is now a world centre for financial services, media, research etc.

Question 6

define globalisation

Answer 6

the growth and spread of ideas around the world- this can involve the movement and spread of cultures, people, money, goods and information

Question 7

what are the impacts of globalisation?

Answer 7

-more businesses in the UK are owned by foreign companies and in the same way British companies own businesses in other countries
-this means for the UK economy to thrive they can not be isolated from the global economy, dependency

Question 8

define a government policy

Answer 8

a government policy is a plan or course of action decided by a government to manage issues in a country

Question 9

explain how government policies have influenced the UK economy

Answer 9

-in 1945-79 government money was spent on ‘propping up’ declining UK industries, ageing equipment, too many employees which caused decades of strikes and social unrest
in 1979-2010 state run industries were sold to private stakeholders to create a more complete business environment, many new companies brought innovation and change
-from 2010 the governments aim was to rebalance the economy, this included improvements to transport

Question 10

what is a post industrial economy?

Answer 10

where manufacturing industry declines to be replaced by a growth in the service sector and corresponding development of a quaternary sector

Question 11

outline why IT has become such an important industry

Answer 11

-computers allow large amounts of data to be stored and accessed very quickly
-the internet enables people to communicate with each other instantly across the world
-technology continues to develop at a rapid pace
-many people can access the interne using smartphones and tablets

Question 12

outline how IT has affected the UK economy

Answer 12

-internet access enables many people to work from home
-many new business are directly involved with IT, manufacturing hardware and designing software
-over 13 million people work in the IT sector
-the UK is one of the worlds leading digital economies

Question 13

explained what has happened to the service sector in the UK

Answer 13

The UK service sector has grown rapidly. Today it contributes over 79% of UK economic output compared to 46% in 1948. Financing is an important part of the service sector. The UK is the worlds leading centre for financial services, it accounts for about 10% of UK’s GDP and employs over 2 million people.

Question 14

what has happened to the development of research in the UK?

Answer 14

the UK research sector employs over 60,000 highly qualified people and is estimated to contribute over £3 million to the UK economy

Question 15

what are some examples of research development in the UK?

Answer 15

-universities
-environment agency

Question 16

what is a science park?

Answer 16

a group of scientific and technological businesses on a single site

Question 17

what is an example of a science park?

Answer 17

Southampton Science Park

Question 18

what are some of the businesses found in Southampton Science Park?

Answer 18

-fibre care, manufacturer of optical fibres
-symmetrical, specialising in gamma ray spectrometers
-photon star, specialising in lighting products

Question 19

explain the benefits for companies locating in a science park

Answer 19

-excellent links with the university, providing research facilities
-source of graduate employees
-attractive location, with extensive green areas

Question 20

what is a business park?

Answer 20

an area of land occupied by a cluster of businesses

Question 21

what are the characteristics that allow businesses in a business park to work together?

Answer 21

-they are often footloose (they are not tied to heavy raw materials so can locate wherever they have a cost advantage)
-they often locate close to transport routes to offer maximum access to customers
-they are dependent on human resources and need peoples ideas and skills to make them work
-they are often more sustainable than heavy industry
-they often group together so ideas can be exchanged

Question 22

explain the impacts that car manufacture can have on the physical environment

Answer 22

-resources, manufacturing and transporting steel and rubber uses energy
-air pollution, burning petrol or diesel causes pollution
-disposal, cars end up on the scrap heap which can leak into the environment
-manufacture, cars consume a lot of energy even before they are driven

Question 23

describe how the population of South Cambridgeshire is changing

Answer 23

The population of 150000 is increasing due to migration into the areas, in 2013 registrations for National Insurance numbers from migrant workers soared by 25%, the proportion of people in South Cambridgeshire is growing, the population is estimated to reach 182000 by 2031.

Question 24

what are the social impacts of population growth in South Cambridgeshire?

Answer 24

-80% car ownership leading to increased traffic on narrow country roads
-gentrification of abandoned farm buildings can lead to a break down in community spirit

Question 25

what are the economic impacts of population growth in South Cambridgeshire?

Answer 25

-reduction in agricultural employment as farmers sell their land for housing development
-lack of affordable housing
-area has some of the highest petrol prices in the country

Question 26

describe the cycle of rural decline

Answer 26

people, especially younger, leave for more opportunities in urban areas –> employers find it difficult to recruit labour –> less investment happens in the area and businesses shut –> less money, less employment and fewer people leads to shops and services declining –> people notice the decline and the lower quality of life

Question 27

describe how the population is changing in the Outer Hebrides

Answer 27

There has been an overall decline in population of more than 50% since 1901 when 46000 people lived on the islands- this decline is mainly due to outward migration (with limited opportunities younger people have chosen to move away from the area in search of better employment).

Question 28

what are the social impacts of a population decline in the Outer Hebrides?

Answer 28

-the number of school children is expected to fall over the next few years which may result in school closures
-with many young people moving away there will be fewer people of working age

Question 29

what are the economic impacts of population decline in the Outer Hebrides?

Answer 29

-shellfish production has increased, but foreign owned ships dominate deep sea fishing
-the development of fish farming has been limited due to concerns about the environment

Question 30

what improvements are the government making to road infrastructure?

Answer 30

-100 new road schemes by 2020
-1300 new lane miles added to motorways and trunk roads to tackle congestion
-extra lanes added onto main motorways to turn them into ‘smart motorways’ and improving links between London, Birmingham and the north

Question 31

what is an example of developments in transport?

Answer 31

-South West Super Highway: the A303 is the main route to the South-West, however traffic flow can be stop start due to alternating stretches of dual and single carriageway, the £2 billion road widening project is the biggest and will create hundreds of construction jobs

Question 32

what improvements are the government making to rail infrastructure?

Answer 32

-electrification of Trans Pennine Express railway between Manchester and York by 2020, reducing journey times up to 15 minutes
-electrification of the Midland mainline between London and Sheffield by 2023

Question 33

what’s an example of rail improvements?

Answer 33

London’s Crossrail or HS2:
-Crossrail will improved journey times across London, easing congestion and offering better connections
-will bring an additional 1.5 million people within 45 minutes commuting distance of London’s key business districts
-around 200 million passengers are expected to use Crossrail each year

Question 34

what is an example of a development project at a port in the UK?

Answer 34

Liverpool2:
-a new container terminal is being constructed at the Port of Liverpool, the scheme to construct a deep water quay on the River Mersey will cost about £300 million
-the project will more than double the ports capacity to over 1.5 million containers a year to compete with other major UK ports
-the new terminal will create thousands of jobs, boost the economy and reduce the amount of freight traffic on the roads

Question 35

why are airports so important?

Answer 35

-creates vital global links, provides thousands of jobs and boosts economic growth
-aviation sector accounts for 3.6% of the UK’s GDP and employs 300000 people
-over two million tonnes of freight pass through the UK’s airports each year

Question 36

what’s an example of a development project in an airport?

Answer 36

Heathrow expansion:
-creating a new runway at Heathrow, increasing the length of one of the existing airways or constructing a new runway at Gatwick
-this would create more jobs and make more money for the UK
-people nearby are concerned about noise from planes

Question 37

is there a north south divide in the UK?

Answer 37

-this refers to the imagined, cultural or economic differences between the south of england and the north of england
-in general the south enjoys higher standards of living, longer life expectancy and high incomes but it also has higher house prices

Question 38

why is there a north south divide?

Answer 38

-during the industrial revolution the UK’s growth was centred on the coalfields in Wales, northern England and Scotland, heavy industries and engineering thrived in cities such as Manchester, Sheffield and Glasgow generating wealth and prosperity
-since the 1970s many industries have declined and unemployment increased
-London and the South east developed rapidly due to a fast growing service sector

Question 39

name some strategies used in an attempt to resolve regional differences between the north and south of england

Answer 39

-foreign investment
-transport improvements
-enterprise zones
-the ‘Northern Powerhouse’

Question 40

outline how foreign investment will attempt to resolve regional differences

Answer 40

-financial support from the UK government and the EU has helped new businesses and improvements in infrastructure
-foreign investment has been encouraged in the north: Nissan at Wasting

Question 41

outline how transport improvements will attempt to resolve regional differences

Answer 41

-a new high speed rail service between London and the north
-upgrade of M62 cross-Pennine motorway
-the new Liverpool2 deep water container port
-the Mersey Gateway, a new 6 lane tall bridge over the river Mersey to improve access the the new deep water port

Question 42

outline how enterprise zones will attempt to resolve regional differences

Answer 42

-aim is so encourage the establishment of new businesses and new jobs in areas where there were n preexisting businesses
-the government supports businesses by: providing a business rate discount of up to £275000 over a five year period, ensuring the provision of superfast broadband and financial allowances for plant and machinery

Question 43

outline how ‘the northern powerhouse’ will attempt to resolve regional differences

Answer 43

-in 2015 the government launched a new strategy for a ‘northern powerhouse’ to help balance the wealth and influence of London and the South East
-this involves developing the economies of major cities in northern England, tourism, food and energy are to be developed in rural areas

Question 44

outline the main trading links the UK has with the wider world

Answer 44

-trade involves the movement of goods and services across the world
-the UK’s most important trading links are with the EU
-the USA is also an important trading partner

Question 45

outline the main cultural links the UK has with the wider world

Answer 45

-used to describe the values and beliefs of a society of a group of people
-food
-fashion
-music
-films
-festivals

Question 46

outline the main transport links the UK has with the wider world

Answer 46

-London Heathrow is one of the busiest airports in the world
-there are important transport links between the UK and mainland Europe via the channel tunnel and sea ferries
-South Hampton is a major port for cruise liners that take thousands of tourists around the world

Question 47

outline the main electronic communication links the UK has with the wider world

Answer 47

-99% of all internet traffic passes along a multi billion dollar network of submarine high power cables, the UK is a focus for these submarine cables
-a project known as Arctic Fibre will lay the first cables between London and Tokyo

Question 48

what are the UK’s links with the EU?

Answer 48

-the EU began as a small trading group of industrial countries in North West Europe
-there was a political movement for the UK to leave the EU by 52% to 48%- te UK has now left the EU

Question 49

how does the EU affect the UK?

Answer 49

-the European structural and investment funds has provided support or disadvantaged regions in the UK and sectors such as fisheries
-the EU is the biggest single market in the world, goods, services, capital and labour move freely between member states and encourage trade
-there are EU laws and controls on crime, pollution and consumers rights, these rules can be restrictive for individuals and companies in the UK

Question 50

outline the links the UK has with the commonwealth

Answer 50

-the UK is a member of the Commonwealth, a voluntary group of 53 countries, most of which were British colonies
-the Commonwealth Secretariat represents Commonwealth countries and provides advice on a range of issues including human rights, social and economic development and youth empowerment
-aims to helps governments achieve sustainable, inclusive and equitable development