changing economic world (UK) Flashcards
what is globalisation?
the process which has created a more connected world, with increases in trade and migration and tourism worldwide.
what is deindustrialisation?
the decline of a country’s traditional manufacturing industry due to exhaustion of raw materials, loss of markets and competition for NEE’s.
what is government policy?
a plan or course of action decided by a government to manage issues in a country.
what is the Commonwealth?
an association of 53 independent, equal states which were mostly territories of the former British Empire. They are united by language,history,culture and their shared values of democracy, human rights and the rule of law.
what is the European Union?
an international organisation of 28 European countries, including the UK, formed to reduce trade barriers and increase cooperation among its members.
what is the industry sector?
the relative proportion of the workforce employed in different sectors of the economy (primary,secondary,tertiary and quaternary)
what is the North South divide?
economic and cultural differences between Southern England and Northern England. There are clear differences in health conditions, house prices, earnings and political influence.
what are tertiary industries?
the economic activities that provide various services-commerical, professional, social, entertainment and personal
what is trade?
the buying and selling of goods and services between countries
what is tertiary?
involves the selling of services and skills
what is quaternary?
consists of those industries providing information services such as computing, ICT and Research and Development
what is secondary?
those that take the raw materials produced by the primary sector and process them into manufactured goods and products.
what is primary?
involves extracting raw materials from the natural environment e.g. mining and farming.
what is an advantage of using a triangular graph?
very useful if there are 3 components to compare
after plotting, clusters emerge enabling identification of trends
what is a disadvantage of this data presentation?
data must be %
useful only for 3 data sets
what has caused the decline in primary jobs and the increase in tertiary and quaternary jobs?
other countries manufacture things cheaper
poverty
lack of jobs
better education-better healthcare
Industrial Revolution
what are the main causes of deindustrialisation? (cost)
increasing cost of production (wages and environmental regulations)
what are the main causes of deindustrialisation? (globalisation)
globalisation- competition from low wage/ regulation NEE countries
what are the main causes of deindustrialisation? (investment)
declining investment leading to less competitiveness
what are the main causes of deindustrialisation? (government policies)
changing government policies (nationalisation to privatisation)
what are the main causes of deindustrialisation? (cycle of decline)
cycle of decline- e.g. if the shipyards close then the iron plants follow
what are the main causes of deindustrialisation? (increased competitiveness)
increased competitiveness of tertiary industries thanks to education and technology
how many coal mines were lost in the UK due to the deindustrialisation?
30,000
what happened in the 1980’s?
government policy shifted away from industries like coal mining and steel by privatising them
what has happened to Tata steel in Port Talbort (Wales)?
it has decreased from 18,000 down to 3,300 jobs due to cheap Chinese steel imports
what happened to towns that totally relied on the coal industry?
thousands were left unemployed- businesses struggled as people were on such low incomes- de-multiplier effect- the area goes into decline
what industries was the North East of England known for before deindustrialisation?
iron and steel
ship building
chemicals
which parts of the UK have been most affected by deindustrialisation?
Blyth, Newcastle, Sunderland as they had shipyards
why might these areas have been affected by deindustrialisation?
because of the River Tyne in Newcastle and Sunderland allows ships to arrive
what is positive about economic growth in the UK?
UK economy grows mainly due to more trade with the rest of the world
what is negative about outsourcing jobs in the UK?
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
what are some examples of deindustrialisation being a cause of the UK’s economic change?
mechanisation- businesses and farms replaced workers for machines- machines are more reliable and cheaper
the average annual wage of a farmer in the UK is £900 or less- unlikely occupation for a highly educated skilled workforce
what are some examples of globalisation being a cause of the UK’s economic change?
NEE’s like China opened their countries to global businesses in the 1980’s and many UK firms chose to move there
much cheaper crops can be imported from countries overseas where mass production brings costs down and labour and land are both cheaper than in the UK
what are some examples of government policy being a cause of the UK’s economic change?
in the 1970-1980’s, UK government sold/turned many of its secondary and primary industries to companies in a process called privatisation- cost many jobs in steel making and coal in particular
the UK and EU have very strict laws for environmental pollution for businesses- this makes it expensive to make products here
what is a post industrial economy?
the economy of many economically developed countries where most employment is now in service industries
what is the UK’s economy now mostly based on>
products based on knowledge and research and service industries
what are 5 examples of industries in the post- industrial economy sector?
information technology
service industries
finance
research
science and business parks
what is information technology?
these businesses use computers and other hardware to store,process and use data, often to help businesses and governments
what are service industries?
businesses that do work for a customer and sometimes produce goods, but is not involved in manufacturing
what is finance?
the financial services industry is a major part of the UK and especially London economy. they provide services to do with money, such as accountancy, money transfer, trading and credit
what is research?
these industries involve research and development, where ideas are transformed into workable products
what are science and business parks?
Business Parks are purpose built areas of offices and workhouses, often at the edge of a city and on a main road. Science parks are often located near university sites and high- tech industries are established. Scientific research and commercial development may be carried out in cooperation with the university.
what are the common characteristics of these 5 industries? (footloose)?
they are not tied to heavy raw materials so can locate wherever they have a cost advantage
what are the common characteristics of these 5 industries? (close to transport routes)?
locate close to transport routes such as motorways and railway stations to offer maximum access for customers and employers
what are the common characteristics of these 5 industries? (human resources)?
dependent upon human resources- they need people’s ideas and skills to make them work and innovate new products and ideas
they therefore require a highly educated workforce
what are the common characteristics of these 5 industries? (sustainability)?
they are often more sustainable than heavy industries with lower energy needs, low or zero pollution emissions, landscaping to offer a nice environment and carbon neutral buildings
what are the common characteristics of these 5 industries? (grouping together)?
they often group together so that ideas can be exchanged- known as agglomeration
which city is bidding to become a science city?
Newcastle Upon Tyne- has a focus upon the science of ageing, sustainable energy and transport
what are growth corridors?
an area of the country where the economy is growing, often along a major transport route linking 2 or more cities
what characteristics must an area have to be considered a growth corridor?
a number of quaternary industries with potential for growth
a highly skilled workforce, educated to degree level or above
where does the M4 corridor go along?
from London to Bristol
what are some examples of companies that are based in modern, out-of-town business and science parks?
Microsoft, Sony and Vodaphone
how much of the UK’s economic output does the M4 corridor contribute to?
8%
what is the M4 corridor home to?
hi-tech industries but recently some of these companies have moved to London
when did Vodaphone move its global headquarters to London?
in 2009
what are the factors drawing companies to London?
the attraction of urban living for a young workforce
the proximity of similar companies to swap ideas and workers
new businesses require less space than the first generation of hi-tech industry
where is the location of Cambridge?
around 50 miles North East of London and East of Birmingham
South East of England
what are the key characteristics of Cambridge Science Park?
UK’s major hub for hi-tech industries
1,500 bio-technology companies
7250 graduates
open greenspace- outside of Cambridge with plenty of parking
80km North of London along the M1
40km from Stanstead Airport
what are the benefits of the science park to Cambridge?
excellent health facilities for local people including the Adenbrooke Hospital
Cambridge has a reputation as world leader in medical research- brings investment
indirect jobs created- including transport and services on the site of the science park e.g. security, cafe workers etc
what is changing at the science park?
there is huge focus on Biomedical Sciences (£46 million investment in new Biomedical centre next to the science park)
the park is home to 34 biomedical companies working on a wide range of products and technologies spanning disease prediction and prevention to diagnostics, treatment and patient monitering
what are the disadvantages for Cambridge due to the Science Park?
house prices are rising due to rising demand in the area
Cambridge is increasingly congested with traffic and pedestrians
rail and road links can’t cope with the demand fast enough
what are examples of companies working in the park?
Abcam- “antibiotics Cambridge”- working on research into cancer,metabolism and providing antibodies
sells 100,000 antibody products to over 140 countries