Economic Futures in the UK

Question 1

What do major changes in the UK economy affect?

Answer 1

-Employment patterns
-Regional growth

Question 2

What are the causes of economic change?

Answer 2

-Deindustrialisation and decline of traditional industries

-Globalisation

-Government policies

Question 3

What is meant by the ‘industrial structure’ (of a country) ?

Answer 3

The percentage of a country’s workforce employed in different sectors of the economy.

Question 4

What are the different sectors of the UK economy?

Answer 4

-Primary
-Secondary
-Tertiary
-Quaternary

Question 5

Primary sector

Answer 5

The resource sector - involves the collection of raw materials

Question 6

Secondary sector

Answer 6

The manufacturing sector - involves manufacturing goods into products

Question 7

Tertiary sector

Answer 7

The service sector - includes finance, teaching, research and development (R&D)

Question 8

Quaternary sector

Answer 8

The knowledge sector - includes high-tech research and design (R&D), scientists

Question 9

When talking about trend in economy, what words would be a good idea to use?

Answer 9

-Grown
-Declined

Question 10

Which model summarises the economic growth of the UK?

Answer 10

The Clarke-Fisher model (paper flashcard)

Question 11

By 1990, what percentage of jobs in the UK were in secondary industry?

Answer 11

55%

This was during the industrial revolution, when the UK’s economy was dominated by manufacturing.

Question 12

What % of the UK’s workforce were working in the tertiary and quaternary sectors in 2017?

Answer 12

83%

Question 13

What declined from the 1960s? (UK)

Answer 13

Secondary industries.

This means the UK now has what we call a ‘post-industrial’ economy.

Question 14

Causes of economic change - Deindustrialisation and decline of traditional industries

Answer 14

The UK’s industrial base declined as increased automation (use of machines) led to job losses in manufacturing industries.

As other countries industrialised, they could produce goods more cheaply than the UK. This increased competition which meant that some manufacturing industries in the UK were forced to close.

Question 15

Automation of farming during the industrial revolution.

Answer 15

-Reduction in the need for manual labour on farms = redundancy

-Farmers sought employment in urban industries with the promise of higher wages = a better standard of living

-So rural to urban migration occurred

Question 16

Causes of economic change - Globalisation

Answer 16

-Trade has been made easier because of containerisation (where there are standard sized containers allowing for faster transportation and therefore less money wasted)

-Many manufacturing industries have moved overseas where labour costs are lower e.g. M&S to India and China

-Some TNCs have now moved some of their tertiary & quaternary operations to the UK e.g. apple which employs nearly 6500 people (UK)

-Improved communications (internet, zoom)

Question 17

What proportion of the UK’s GDP comes from foreign trade?

Answer 17

69%

(World Bank, 2022)
(from 38% in 1965)

Question 18

Causes of economic change - Government policies 1945 - 1979

Answer 18

Industries were run by the state (for example GWR, British gas, British rail, British coal).

Working practices were outdated…

Question 19

Causes of economic change - Government policies 1979 - 2010

Answer 19

-Key manufacturing industries (previously own and run by the government) were privatised (e.g. steel, ship building)

-Many related areas regenerated into financial centres (e.g. the paintworks, Bristol)

-This led to major job losses but increased efficiency

-Multiple companies fought for customers e.g. rail lines. This competition increased investment and led to more innovation, which ultimately led to better quality services.

Question 20

Example of government policies 1979-2010

Answer 20

In 1984, PM Margaret Thatcher took down British coal because the industry was too reliant on money from the government

Question 21

Causes of economic change - Government policies 2010 onwards

Answer 21

The government has carried out lots of deregulation (removing restrictions and taxes on businesses to encourage entrepreneurs and investors to move to the UK.)

Which has led to the growth of more tertiary and quaternary industries.

Question 22

What has made it easier for UK companies to operate across the world?

(even moving manufacturing overseas!)

Answer 22

Membership of trade agreements, and organisations.

(e.g. The World Trade Organisation)