Changes in UK Economy Case Study — UK Flashcards
Causes of Economic Change: Industrial Structure
Decline of secondary industry + increase in tertiary and quaternary industry;
Machines + technology replaced jobs;
Other LIC and NEE countries produce cheaper goods —> labor is less expensive;
Lack of investment, high labor costs + outdated machinery make UK products too expensive;
Traditional industries eg, coal mining, engineering, manufacturing, have declined —> now is world center for financial services, media, research and creative industries
Causes of Economic Change: De-Industrialization
North thrived in secondary sector, but now because it is declining, more businesses in tertiary and quaternary set up in the south;
UK covered in coal mines, but now they are no longer in use. Also, textile and steel manufacturing has declined;
Jobs lost —> businesses close and thus lead to towns with low income
Globalization
UK businesses owned by foreign companies and vice versa;
Economic growth —> UK economy grows by 1-2% in most years because of trade;
Cheaper goods and services —> Products bought are cheaper because they are produced in places where people own lower wages than citizens;
Foreign investment —> Foreign companies invest in the UK, bringing new ideas and technology, and provide more jobs;
High-value production —> UK specializes in high-value manufacturing;
Migration —> Migrants fill jobs where there is a shortage of skilled workers in healthcare and construction and many British people travel abroad for work;
Less manufacturing —> More imports from foreign countries, eg. China, means less goods produced in the UK. Factories close so jobs are lost;
Outsourcing jobs —> Jobs that used to be done in the UK are now done elsewhere, meaning a loss of jobs or lower wages for workers which are still in the UK;
Inequality —> The gap between low-paid unskilled work and high-paid skilled work is increasing. It is hard for low-paid workers to negotiate for high-pay when jobs can be outsourced
Moving Towards A Post-Industrial Economy
Definition: where manufacturing industry declines to be replaced by growth in the service sector and the corresponding development of quaternary sector;
From the 1970s;
10% to 15% of jobs in quaternary sector;
Cities with great potential must have: a number of quaternary industries; a highly skilled workforce, educated to degree level or above; new businesses with a potential to grow; good transport connections, including road, rail, and air;
Often the focus of growth corridors where fastest economic growth is happening;
Science parks: a group of scientific and technical knowledge-based businesses located on a single site — most associated with universities, enabling them to use research facilities and employ skilled graduates, may include support services, eg, financial services and marketing, offers many new jobs;
Business parks: an area of land occupied by a cluster of businesses — often located on the edges of towns because: land tends to be cheaper than in town center, with more available land, businesses can be extended, access is better for workers and distribution, using by-passes and highways, with less traffic congestion than in towns or cities, businesses can benefit by working together
Rural Areas with Population Increase: Economic
Most people shop in the nearby urban cities instead of the local town;
House prices increase;
Gasoline is cheaper than in urban cities;
Rural Areas with Population Increase: Economic
Most people shop in the nearby urban cities instead of the local town;
House prices increase;
Gasoline is cheaper than in urban cities;
Migrant workers suppress job wages;
More high-tech businesses;
Area attracts wealthy
Rural Areas with Population Increase: Social
Schools are overstretched; Loss of community spirit; More congestion/traffic; More foreigners; Proximity to big cities
Rural Areas with Population Decrease: Economic
Lack of part-time jobs —> limited pocket money;
Hard to find suitable workplace;
Young adults would need to move away for further education;
Adults struggle to support family due to lack of jobs;
Elderly struggle to survive on pension ;
Lack of medical care
Rural Areas with Population Decrease: Social
Few people to socialize with;
Lack of recreational activities;
Limited schooling options;
No services to take care of elderly
Improvements & Developments in Transport Infrastructure: Road Improvements
Aim is to increase the capacity and improve the condition of UK roads. They will create thousands of jobs and boost local and regional economies;
100 new road schemes by 2020;
1300 new lane miles added to highways and trunk roads to tackle congestion;
Extra lanes added onto main highways to turn them into ‘smart motorways’ and improving links betweenez London, Birmingham, and the north
Improvements & Developments in Transport Infrastructure: Railway Improvements
Electrification of the Trans-Pennine Express Railway between Manchester and York by 2020, reducing journey times;
Electrification of the Midland mainline between London and Sheffield by 2030;
HS2 - a 50 billion pound plan for a new high-speed rail line to connect London all the way to Manchester and possibly Newcastle and Scotland
Improvements & Developments in Transport Infrastructure: Port Improvements
Belfast - 50 million pounds invested in facilities to service offshore renewable energy sector. Land is available to accommodate manufacturing for wind, wave and tidal energy;
Bristol - 195 million pounds invested for bulk handling and storage facilities;
Felixstowe and Harwich - a new rail terminal at Felixstowe and upgraded cruise service facilities at Harwich
Improvements & Developments in Transport Infrastructure: Airport Improvements
Expanding London’s airports:
Adding a new runway at Heathrow;
Increasing the length of one of the existing runways at Heathrow;
Constructing a new runway at Gatwick
North-South Divide
People in South earn more per week, generate more wealth for the country, are less likely to be unemployed, + live longer than people in the North.
Industries during the industrial revolution were based in the North. The UK is now a post-industrial economy so businesses are interested in the south where it’s closer to the rest of the world + has less harsh weather
North-South Divide: Solutions
Foreign investment has been encouraged in the north;
Developing cities in the north to attract tourism (eg, Newcastle);
A new high-speed rail between London and the north;
Upgrading highways;
New Liverpool deep-water container port;
The Mersey Gateway — a new 6-lane toll bridge over the River Mersey to improve access to new deep-water port
