Changing UK economy Flashcards
Primary sector
raw materials
mining
farming
Secondary sector
manufacturing
factories
Tertiary sector
services
doctors
teachers
Quaternary sector
advanced high tech
R&D
computer science & IT
pharmaceuticals
scientific research
Deindustrialisation
the declining use of factories and manufacturing industry
-some resources such as iron ore and coal have declined in the UK due to unavailability and uneconomic extraction
-working hours are long and wages low in agriculture making it an unattractive occupation for highly skilled workers
Globalisation
Process which creates a more connected world and increased movement of goods and people worldwide
Government policy
As part of the new Labour government, there is major investment in R&D of new green technologies of carbon capture
Stricter environmental laws reduced secondary industries like steel manufacturing
Post-industrial economy
An economy where the manufacturing industry declines and is replaced by growth in the tertiary and quaternary sector
UK’s post industrial economy
FINANCE:
banking, insurance
London is the UK’s financial centre
employs 2,000,000
SERVICES:
grown rapidly since the 1970s
79% of UK’s economic output
RESEARCH:
quaternary sector
contributes £3 billion to the UK economy
British unis like Oxford
main areas of future growth
IT (information technology):
allows many people to work from home
1.3 million work in IT
the UK is one of the world’s leading digital economies
GDP VS GNI
GDP: all production within the country
GNI: all income produced by the country’s business and people
Science park: a collection of scientific and tech knowledge based businesses on a single site
over 100 in the UK
Most associated with Universities
hubs for high tech industries specialising in IT and R&D
75,000 work in Science Parks
Improvements and new developments in the transport infrastructure of the UK
AND how they help grow the UK economy
Road: South West super highway
-at peak times the A303 can become heavily congested
-the £2 billion road-widening project will take 15yrs and create 100s of jobs.
= help lessen traffic
=improve the economy of the South West as people are more willing to commute
=more jobs provide more moeny for spending
Ports: Liverpool2
-a new container terminal constructed at the port of Liverpool
-double the ports capacity to over 1.5 million containers a year
=creates 1000s of new jobs
=boost local North-west economy through more jobs and spending money
=reduce the amount of freight traffic on the roads
Rail: London’s Crossrail
-£14.8 billion
-32km of new tunnels
-improve journey times across London and connect London to Reading
= bring 1.5 million people within 45min commuting distance to visit London’s key business district
=200 million passengers yearly
=bringing more money and workers into London
=improving London’s economy
Airports: Heathrow airport expansion
-new runway at Heathrow & increasing the length of a current runway
-£18.8 billion
=more jobs created
=more flights available and people visiting London
=more money to spend X effect
=more local spending and government tax
North-South divide in the UK
(not the East-West divide in London)
WHY?:
-London and the SE are the economic core of the UK generating 20% of the UK’s GDP
-North and West are on the economic periphery
-better educational outcomes in the South and East = highly qualified work force
the decline of traditional manufacturing industries in the North are replaced with low skilled low paid service sector jobs, retail and call centres
CONSEQUENCES:
-the south-east has a higher median weekly earnings with the north about £200 less a week
-Higher job seekers allowance % given to the North
-the life expectancy on whole is lower in the North especially in Scotland.
STRATEGIES USED TO REDUCE REGIONAL DIFFERENCES:
1-Levelling up aims to improve services like education
derelict urban sites in 20 towns and cities will be targeted for redevelopment to create more high paying jobs in the North
-£100 million
-ve some bus routes in rural areas are cut to make it cheaper worsening transport routes
2-Enterprise zones designated areas aimed at stimulating economic growth by offering incentives to businesses to establish or expand their operations into the zones
-48 zones in the UK
-enhanced capital allowances for machinery and equipment
-tax breaks of up to 100% for 5yrs
=tries to get businesses to move into deprived areas and provide higher skilled jobs
3-Local enterprise partnerships locals making local decisions for the local community
-business led partnerships responsible for local economic development
-ONLY in England
-eg Destination Plymouth that hoped to bring new visitors to the city growing spending and tourism related jobs
How is the UK linked to the wider world?
Trade-the Uk’s exports are worth over £250 billion yearly
-mainly exporting to USA, Germany, China, France
-London is a global banking and financial centre, 180 foreign banks based there
-the UK is a member of the G7, the 7 strongest world economies
Culture-the Uk has strong media and creative industries including Doctor Who, James Bond
-the BBC has a massive global audience of 450 million a week
-football, over 3bn people in 188 countries watch its matches
Transport-channel tunnel and the Eurostar connecting the Uk to France and Europe
-London heathrow is one of the busiest airports in the world, busiest in Europe
Electronic communication-global submarine cable network
-99% of internet traffic travels through submarine fibre optic cables
-the Uk is a hub for these cables coming from the Arctic Ocean
How the UK has economic and political links:
The UN- the UK is one of the 5 permanent members and has veto right on any laws or global aid projects
The Commonwealth- a group of 56 countries mostly former British colonies
-shared historical and cultural history
-the king is the head of the commonwealth
NATO North Atlantic Treaty Organisation founded 1949 in a defence pact between N America and Europe
-the UK is a leading member of NATO however Trump threatens to pull USA out of NATO.
