Economic World 3 - Economic development the UK Flashcards
What do major changes in the UK economy affect?
-Employment patterns
-Regional growth
What are the causes of economic change?
-Deindustrialisation and decline of traditional industries
-Globalisation
-Government policies
What is meant by the ‘industrial structure’ (of a country)?
The percentage of a country’s workforce employed in different sectors of the economy.
What are the different sectors of the UK economy?
-Primary
-Secondary
-Tertiary
-Quaternary
Primary sector
The resource sector - involves the collection of raw materials
Secondary sector
The manufacturing sector - involves manufacturing goods into products
Tertiary sector
The service sector - includes finance, teaching, research and development (R&D)
Quaternary sector
The knowledge sector - includes high-tech research and design (R&D), scientists
When talking about trend in economy, what words would be a good idea to use?
-Grown
-Declined
Which model summarises the economic growth of the UK?
The Clarke-Fisher model (paper flashcard)
By 1990, what percentage of jobs in the UK were in secondary industry?
55%
This was during the industrial revolution, when the UK’s economy was dominated by manufacturing.
What % of the UK’s workforce were working in the tertiary and quaternary sectors in 2017?
83%
What declined from the 1960s? (UK)
Secondary industries.
This means the UK now has what we call a ‘post-industrial’ economy.
Causes of economic change - Deindustrialisation and decline of traditional industries
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. More of the UK’s goods now have to be imported from overseas.(costly?)
Automation of farming during the industrial revolution.
-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
Causes of economic change - Globalisation
-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)
What proportion of the UK’s GDP comes from foreign trade?
69%
(World Bank, 2022)
(from 38% in 1965)
Causes of economic change - Government policies 1945 - 1979
Industries were run by the state (for example GWR, British gas, British rail, British coal).
Working practices were outdated…
Causes of economic change - Government policies 1979 - 2010
-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.
Example of government policies 1979-2010
In 1984, PM Margaret Thatcher took down British coal because the industry was too reliant on money from the government
Causes of economic change - Government policies 2010 onwards
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.
What has made it easier for UK companies to operate across the world?
(even moving manufacturing overseas!)
Membership of trade agreements, and organisations.
What were the impacts of automation?
-A lower labour cost which increased profit made by secondary industries.
-However, this was at the cost of many people losing their jobs.
Marks and Spencer have moved their clothes manufacturing to India and China to make bigger profits. This has led to economic change because…
…their main manufacturing industries in the UK declined, which has led the proportion of people working in Tertiary and Quaternary sectors to have grown (to 83% of the UK’s workforce).
Since the 1980s, the government has been deregulating industry, removing taxes on businesses. This has caused economic change because…
..the privatisation led to competition between small companies which increased investment and led to more innovation and growth, which ultimately led to better quality services.
BUT it has also led to debates about the balance between economic freedom and the need for regulation to protect consumers and workers.
The UK is a member of the World Health Organisation, which makes it easier for companies in the UK to operate around the world. This has caused economic change because…
…it promotes international trade and collaboration, opening new markets and opportunities for UK businesses while encouraging the exchange of ideas and innovation on a global scale.
=Economic growth, because UK companies can sell more products and services. More business means more jobs and higher incomes for people.
=Better products and services. The exchange of ideas drives innovation and improvement.
=Diversification: Operating in multiple markets means that companies can still thrive if the UK market/ economy faces challenges - by selling in other markets.
=Consumer Benefits: International trade can lead to more competition, which often results in better quality products and lower prices for consumers.
TNCs are moving some of their tertiary and quaternary operations to the UK. This has caused economic change because…
…ever- more people are working in these sectors (83% in 2017), which has helped the UK develop into having a post-industrial economy.
These sectors result in a higher amount of money circulating for the government to invest.
Example of a quaternary TNC based in the UK.
Apple employs 6500 people across the UK.
What are the impacts of industry on the physical environment?
-Pollution
-Use of natural resources
-Damage to nearby habitats
What does growing the economy improve?
The economic and social wellbeing of the people.
Many countries view secondary industries as…
…the first step in economic development. However, they have many negative environmental impacts.
Pollution
-Factories can create soil, air, water, noise, and visual pollution as they operate.
-Air pollution has global impacts.
-Many factories release pollutants as a by-product when processing raw materials or manufacturing goods.
-These can contaminate water resources and the soil, which damages ecosystems. Damaging ecosystems has major knock on effects such as a reduction in biodiversity.
Use of natural resources
-Operating a factory requires many inputs like water and energy
-An increased demand for these resources in an area means more needs to be produced and transported to/from the factories
-Lowering the water table means less groundwater is available to support waterways. This results in a reduced water supply for drinking, agriculture, and ecosystems, which increases the risk of drought.
-More fossil fuels used for transport means more greenhouse gases released.
Why might the use of natural resources be the smallest impact of industry on the environment?
Although factories require lots of inputs to run like water and energy, the energy can be obtained using renewable methods like wind/solar which reduces their impact.
Why might damage to nearby habitats be the smallest impact of industry on the environment?
-Point source (pollution) not diffuse
-Local not regional/global
Damage to nearby habitats
-Extracting raw materials damages the environment through destroying habitats directly and through the release of toxic chemicals/ effluent into rivers, lakes, and oceans, contaminating them.
-As an example, iron sulfide turned the Animas River in Colorado yellow after the the 2015 Gold King Mine waste water spill
How can modern industrial development be made more environmentally sustainable?
-Planting trees
-Renewable energy
-Insulation
-Open, green space
What is Torr Quarry our example of?
An example of how modern industrial development can be more environmentally sustainable.
Quarry
An industrial site where stone, or other raw materials, are extracted from the ground for processing.
Describe Torr Quarry
-An industrial site located in North East Cranmore, on the Mendip hills in Somerset, England
-Surrounded by natural and manmade embankments; woodland (reduces noise and visual pollution)
-Is served by a branch of the East-Somerset railway
What raw material does Torr Quarry produce?
Limestone
What is limestone used for?
Making concrete and other manufactured products.
How big is Torr Quarry?
It’s the 7th largest quarry in the UK.
How many of Torr Quarry’s products are transported around the country by rail?
3/4
What are the environmental impacts of Torr Quarry?
-A visually unattractive landscape
-Noise pollution
-Air pollution and use of natural resources from trucks and trains transporting limestone
-Destruction of nearby habitats
Why is Torr Quarry being made more environmentally sustainable?
-The owners were proactive, and recognised the negative environmental impacts of the development
-They introduced strategies to be more environmentally sustainable, addressing issues before complaints.
-They wanted to involve the community
-They were highly commended at the MPA restoration and Biodiversity awards, 2013
How is Torr Quarry being made more environmentally sustainable? - Pollution
-200 acres of land on the border of the quarry has been landscaped by planting trees
-This reduces visual and noise pollution
-Most of the limestone is transported around the country by rail, limiting the number of lorries travelling on the local village roads
-This prevents noise pollution/dust on the roads
-Noise, dust, and water quality are monitored regularly
How is Torr Quarry being made more environmentally sustainable? - Use of natural resources
-Eu funded wildlife lakes will provide water for the local supply
How is Torr Quarry being made more environmentally sustainable? - Damage to nearby habitats
-There are plans to restore the quarry and make 2 wildlife lakes, funded by the EU! and lined by South West Water
-Future plans are to dig the quarry deeper, rather than wider into the surrounding countryside
Green roofs
Green roofs provide insulation. This reduces energy demands which means that less power needs to be generated. They also absorb CO₂.
Tree planting.
Trees and other plants can be introduced. They absorb CO₂ and other pollutants, which means that air quality improves in the area.
Solar panels
Solar panels generate renewable energy from sunlight, reducing the need to burn fossil fuels.
Open green spaces
Having open green spaces reduces visual pollution created by the industrial site. They can allow concrete buildings to blend more seamlessly into the natural environment.
What are our examples for social/economic change in the rural landscape?
-North Somerset (an area of population growth)
-South Lakeland (an area of population decline)
Positive multiplier effect definition
An increase of spending in an area, that leads to further spending, leading to a cycle of growth.
Population decline
The population of an area decreasing in size.
Commuter
Someone who lives in one place and travels to a different place for work each day.
Where do commuters normally travel to and from?
Commuters normally travel from a rural, residential area to an urban area with lots of jobs (e.g. a city).
Why has the population of North Somerset grown?
-House prices are lower than in major cities
-Good transportation links, particularly to Bristol (M4, rail line from Western Super-Mare) which encourages commuters
-More green spaces, less crime, and less pollution than in urban areas = better quality of life
-There has been a positive multiplier effect, where more services have attracted more people
How much has the population of North Somerset increased by?
7.8% between 2005 and 2015.
Social changes in North Somerset due to population increase?
-Oversubscribed services
-Local unemployment if agricultural land is sold to make space for new developments/estates.
Economic changes in North Somerset due to population increase?
-Congestion
-Increasing house prices
-High wages
Environmental concerns of congestion?
Congested traffic leads to increased fuel consumption and higher emissions of pollutants like carbon dioxide, contributing to air pollution and climate change.
Economic changes in North Somerset - Congestion
Roads in smaller towns and villages like Banwell are becoming very congested by commuters.
This has the economic impact of businesses suffering due to delays in transportation and delivery times, which results in financial losses.
Commutes take longer which decreases productivity as people spend more time stuck in traffic than engaging with work/social activities.
Social changes in North Somerset - Oversubscribed services
Some services (e.g. schools) are becoming oversubscribed because the demand is so high.
This means larger class sizes, which means that students will have a poorer quality of education (for example, less individual support).
Economic changes in North Somerset - Increasing house prices
It is often wealthy commuters with jobs in major cities like London are settling in North Somerset, as they find the area very attractive.
This means that house prices in the area are rising rapidly. They increased by 5.5% between 2017 and 2018, on average.
Which means gentrification (then explain).
Economic changes in North Somerset - High wages (+ve)
The growth in the area means employment and wages are above the national average.
TMT people have more disposable income, which means that the local economy can further improve.
Why has there been population decline in South Lakeland, Cumbria (NW)?
-Transport links are poor, with many secondary roads in and around the district
-The nearest major city, Leeds, is a 2 hour car journey away, so unsuitable for commuters
-Most of its jobs were in agriculture or manufacturing, but these sectors have declined since the UK moved to a post-industrial economy= a decrease in the number of jobs available
-Unattractive as businesses and services are closing
How much has the population of South Lakeland decreased by?
0.8% between 2005 and 3015
Social changes in South Lakeland due to population decline?
-An ageing population
-Reduction in public services (because they’re too costly to maintain! this includes public transport.)
Economic changes in South Lakeland due to population decline?
-Closure of shops and businesses
Social changes in South Lakeland - an ageing population
The younger population are migrating from the county of Cumbria for better employment opportunities, leaving an ageing population behind.
TMT there will be more pressure on healthcare services in the area like GP surgeries and care homes, which reduces the likelihood of care being received (longer waiting times etc.).
So, there’ll be an increase in sickness and stress.
Social changes in South Lakeland - A reduction in public services
There has been a reduction in public services like leisure centres and dentists in the local area.
TMT people have been forced to travel to services further away.
WMT there’s an increased reliance on public vehicles like cars.
This is made worse due to a reduction in the number of buses each day.
Economic changes in South Lakeland - closure of shops and businesses
-The closure of shops and businesses is leading to lower taxes for the local government
-TMT they have less money to invest in local services like GP surgeries or schools, and into facilities like public toilets.
-WMT people have fewer opportunities locally and may commute e.g for a better schooling experience.
What percentage of South Lakeland’s population is predicted to be over 50 by 2029?
56% of South Lakeland’s population is predicted to be over 50 by 2029.
Economic changes in South Lakeland - closure of shops and businesses 2.0 (M&S name drop)
In Barrow, Cumbria, many shops have closed with more (like Marks and Spencer) at risk.
TMT people have to travel further distances to access basic needs like food/toiletries.
WMT they are more inclined to shop online, decreasing the local retail economy.
(it also makes the area a less convenient place to live, so less attractive).
What is counter- urbanisation?
The movement of people from an urban area to a rural one (deemed a more attractive environment).
What are the improving elements of transport-infrastructure we study?
Ports-Felixstowe port expansion
Airports-A new third runway at Heathrow airport
Roads-Smart motorways
Railways- The HS2 rail link
The Felixstowe Port Expansion
-Felixstowe is the largest port in the UK, handling 44% of all the UK’s container traffic
-It is hoped to be doubled in size by 2030 (deeper and further out of the coast)
-This would enable it to handle the largest cargo vessels in the world (plus income would double)
-Which would make global sea trade far easier for the UK, with goods brought in from all across the world
-Automated cranes for containerisation = globalisation/global transfer of goods efficiently, less lost profit.
What are negatives of the Felixstowe port expansion?
There is concern over the environmental impact of the port: vulnerable saltmarshes and mudflat ecosystems will have to be destroyed.
This would mean a loss of habitat which would mean a decline in wildlife populations (like the curlew).
There has already been a 15% decline in the waterbird population in the past 15 years.
What is the function of Smart Motorways?
They use technology to reduce congestion.
When did the government introduce Smart Motorways?
2006
Positives of Smart Motorways
-Hard shoulder used to reduce congestion at busy times of the day
-Variable speed limits used to limit traffic
What does a red cross mean on a Smart Motorway?
You should not drive there.
Why is the UK road network important?
It keeps people and goods moving around the country.
Negatives of Smart Motorways
-Hard shoulders have been removed from some, which forces breaking down vehicles to stop in the middle of a moving lane of traffic = danger.
-There can be years of disruption during the building/conversion process
What is the aim of the Heathrow airport expansion?
To expand the airport, including a new runway
Flights will allow up to 700 more international planes each day.
Increased revenue from tourism!
How much is the Heathrow airport expansion estimated to cost?
£14 billion
Negatives of the Heathrow airport expansion
-Many buildings need demolishing, including the entire village of Longford
-A proposed 3 new car parks (with space for 52500 more cars) will add to traffic congestion on the M5
-more flights increase greenhouse gas emissions, contributing to cc
High Speed rail link 2 (HS2)
-A plan to improve rail links (& hence connectivity) between London and cities in the North of the UK (such as Birmingham, Leeds, Manchester).
-Fast pendulum trains with few stops
-The plan to go beyond Birmingham (phase 2) was scrapped due to rising costs.
Cost of HS2?
Estimated - £33bn
Final (up to Birmingham) - ballooned to £72bn
Negatives of HS2?
Scrapped past Birmingham in 2023 due to rising costs.
What is the North-South divide?
The economic and social differences between the Northern and Southern regions of the UK.
What change in the economy of the UK has had a negative impact in the North?
Deindustrialisation.
Has led to a negative multiplier effect in the North East, whose economy was reliant on heavy industry such as coal mining and shipmaking. Industry shut down = many supporting businesses shut = affected thousands of people.
What change in the economy of the UK has had a positive impact in the South?
Secondary to tertiary based economy.
What % of jobs in UK cities are now wither tertiary or quaternary based?
97%
Why do businesses (and therefore people) cluster in the South East of England?
A positive multiplier effect caused by London.
London generates 22% of the UK’s GDP.
Evidence of the North-South divide (Wages)
Income gap approx. £4,900. Residents in London earned around a third more than their counterparts in the North on average.
Evidence of the North-South divide (Health)
Average life expectancy in Scotland = 79 yrs
London = 81 yrs
Evidence of the North-South divide (Education)
Attainment gap evident in GCSE results.
In 2022, 13% more students achieved G5+ in the Surrey than Durham.
What are the strategies used in an attempt to reduce the North-South divide?
-Devolving powers
-Enterprise zones
-The Northern Powerhouse
What is our example for ‘resolving regional differences’?
Reducing the North-South divide.
Devolving powers
The power to make decisions are transferred from central government to local/regional levels.
How is devolving powers helping to reduce the North-South divide?
Will reduce the divide because…
the regional leaders have a better understanding of an area that’s being improved
which means that projects are more successful (e.g. improving public transport, schemes to attract businesses, improving brownfield sites).
What are the benefits of a business locating in an Enterprise zone?
-Reduced taxes
-Simpler planning rules
-Improved infrastructure e.g. road links, superfast broadband
Enterprise zones are…
…areas where money is spent to attract businesses to certain areas e.g. the Sheffield City Region enterprise zone.
How will the Sheffield City Region enterprise zone reduce the North-South divide?
-reduced taxes so running businesses in the area = cheaper
-businesses e.g. the car manufacturer McClaren set up
-An estimated £318 million made for investment within 6 yrs
When was the Sheffield City Region enterprise zone established?
2011
The Sheffield City Region enterprise zone road improvements
‘The Great Yorkshire Way’ (a road network) was established in 2018 = increased connectivity = encouraged further growth.
Explain what is meant by the ‘Northern powerhouse’
The Northern Powerhouse is a plan by the government to invest money into the North and improve transport links between northern cities.
What is included in the Northern Powerhouse plan?
The HS2 rail link
£70 spend on schools
Extending the coverage of superfast broadband
What is the aim of the Northern Powerhouse plan?
Encouraging industries to expand and developing skills in the people to support business growth.
To create a positive multiplier effect in local economies.
Explain the criticism some people have for the Northern Powerhouse plan.
Northern leaders feel the government’s failed to deliver on its promises. e.g. the Liverpool City Region was assured of a new twin-track high-speed line from Liverpool to Manchester, which has not materialized.
Eastern leg of HS2 not built in full (to Leeds).
Concern that the watered-down rail plans will not provide the promised economic boost and could worsen congestion and financial conditions in the North.
get the gist!
What are the four ways the UK is connected to the wider world?
-Trade
-Culture
-Transport
-Electronic communications
How is the UK connected to the wider world? - Trade
Exports from the UK to other countries are worth £160 billion/yr including food to Europe.
Who are the UK’s main trading partners?
-USA
-Germany
-China
Who does the UK get most of its imports from?
Germany
How is the UK connected to the wider world? - Culture
-Strong creative industries export British culture around World
-Art, food, music, TV (Shaun the Sheep -170 countries)
How is the UK connected to the wider world? - Culture pt 2
-Immigration has led to cultural diversity within the city
-In 2019, Chinese food was voted the Nation’s favourite takeaway.
How is the UK connected to the wider world? - Transport
-Channel Tunnel (to France) allows easy transport from UK to mainland Europe
-10 million passengers per year.
How is the UK connected to the wider world? - Transport part 2
-Several international airports incl. Heathrow, an international hub w/ flight travelling to 185 different locations in 84 different countries.
How is the UK connected to the wider world? - Electronic Communications
-Electronic cables e.g. the Trans Atlantic cables run under the sea from the UK to other countries, carrying digital data incl. telephone and internet traffic
How is the UK connected to the wider world? - Electronic Communications pt 2
The UK has the HQs of many international communication companies loke EE, Vodafone, O₂
Explain how the UK has formed economic and political links with the European Union.
The UK joined the UK in 1973, making trade (trad. of coal and steel) easier.
We left in January 2020.
Development of the EU?
Initially called the ‘European Coal and Steel Community’ w/ 6 members
Then grew to 28 countries.
Now 27 countries.
What countries made up the European Coal and Steel Community?
France, Germany, Italy, Netherlands, Belgium, Luxembourg.
Explain how the UK has formed economic and political links with the Commonwealth.
The Commonwealth. formerly the ‘British Commonwealth’ is a group of 54 countries that came into being once the British Empire ended.
Initially, only those under British rule could join but now any country can.
What is good about the Commonwealth?
It is a ‘Family of Nations’ that are equal but independent countries.
Promotes human rights, international peace and security.
Commonwealth games every 4 yrs attracts spectators from all over the World.
Explain why science and business parks have grown in the UK, since the 1960s.
-Shift to a post-industrial economy has led to growth in quaternary sectors incl. biomedicine and IT.
-Rapid development in IT drive need for specialised facilities- science parks provide the infrastructure and resources needed
-High-tech companies attracted investment = growth
Describe the location of most Science Parks in the UK
-Outskirts of University cities
-To take advantage of uni R&D and to employ graduates
-Good transport links (motorways/airports/rail)
-Green space so room to expand
Why might science/business parks employ university graduates?
They can apply their knowledge and experience to innovate businesses
Describe the location of most business parks in the UK
-Outskirts of major urban areas
-For good communications and cheap land
-Near other businesses to benefit from supplying goods and services to each other
What are business parks?
Small groups of businesses in the same land area.
What are science parks?
A group of scientific and knowledge-based businesses located on a single site.
Aim - to foster innovation/ collaboration between businesses & universities, facilitating the growth of high-tech industries.
Science park example
The University of Southampton Science park
Opened 1986
Works for sustainable development e.g. an anaerobic digestion system that produces heat and power from waste
Business park example
The Uk’s largest - Cobalt Park, Tyneside - retail and recreation opportunities e.g. cycleways/green space, Santander
Close to A1 and 20 minutes from international airport
When did manufacturing industries go into decline?
1970s
What % of the UK workforce are employed in the tertiary sector
around 80%
How has IT helped the UK move to a post-industrial economy?
-Internet has allowed people to work from home/for self-employement
= More tertiary businesses
-Information can be accessed anywhere using mobile devices
-Attracts investment incl. from abroad
How much did London-based technology businesses raise from 2015 - 2018?
£9 bn, closely followed by Cambridge at £583 million
