P2 changing UK economy Flashcards
describe the changes to each sector in the UK
- primary sector (agriculture, mining and fisheries) declined mainly due to the increases use of machinery
- since 1960’s the manufacturing sector declined dramatically, also due to increased mechanism and competition from abroad
- the service sector increased dramatically due to the expansion in public services and growth of financial services
- since the 1980’s the new knowledge based ( research and development) sector has become important
what are the3 main causes for economic change in the UK
- deindustrialisation
- agriculture
- government policies
what is deindustrialisation and what is its impact on the UK
- one of the most significant economic processes to be taken place in the UK
- involved the decline of the UKs traditional heavy industries due to competition from abroad making these industries uncompetitive
- these industries were often based close to raw materials (coal, iron and steel)
- they depended heavily on manufacturing for example tata steel in port Talbort (Wales) has decreased from 18,000 to 3,300 jobs due to cheap Chinese steel imports
what is globalisation and what is its impact on the UK
- the increasing interconnections and interdependence between nations, due to factors like trade agreements and faster transportation
- the global economic landscape has been transformed by the growth of TNCs and rapid economic growth experienced in Asia
- the UKs place within its landscape has changed to focus partially on the service sector (finance, media and education) and the rapid developing quaternary sector (research)
how have government policies addressed economic change between 1945-1979
- the government created state run industries (E.G British steel cooperation) to support the UKs declining heavy industries and protect jobs
- outdated machinery and working practices led to factory closures, unemployment and considerable unrest during the 1970s
how have government policies addressed economic change between 1979-2010
- state run industries were privatised, many heavy industries closed down and jobs were lost
- government and private sector investment resulted in a transformation of many former industrial areas (e.g London docklands) into financial centres (e.g canary wharf), offices and retail parks as the service sector started to grow rapidly
how have government policies addressed economic change since 2010 onwards
- the government has sought to rebalance the economy by encouraging investment in the high tech manufacturing sector, for example aerospace and computer engineering
- it has invested in transport infrastructure such as London’s Crossrail and the development of high speed rail connections ( HS2) with the ‘northern powerhouse’
- loans and other financial incentives are available to encourage small businesses to set up in the UK
how have government policies addressed economic change in 2016 onwards
- the UK voted in referendum to leave to EU
- the UK formally left the EU on the 31 January 2020 and entered a ‘transition period’ ( during which time nothing changed) which ended on 31 December 2020
- a free trade agreement has been reached with the EU
what caused the uk to move towards a post-industrial economy
- the decline of the heavy industrial sector in the 1970s
how has information technology affected peoples lives and economic development
- computers can store and process vast amounts of information very quickly
- mobile devises such as smartphones enable information to be accessed almost anywhere
- the UK is recognised as one of the top IT countries ITW, attracting business investment from foreign companies
- the internet and use of computers allows people to work from home
- in the UK over 1.3 million people work in the IT sector
- developments in the technology have stimulated the growth of specialist manufacturing industries as well as service and research
- communications using satellite and the internet promote the flow of information
what affect have service industries had on the economy
- service industries provide support rather than manufacturing products
- service is by far the largest industry in the UK, in both terms of employment and economic output
- finance, including banking, insurance and fund management, is one of the major growth areas
- finance sector employs over 2 million people and contributes about 10% of the the UKs gross GDP
- UK is recognised as the worlds leading centre for financial management with the city of London at its core
what effects have developments in research had on the economy
- research and development is part of the UKs rapidly growing quaternary sector
- it employs over 60,000 highly educated people and contributes £3 billion to the UK economy
- much research is linked to UK universities such as Oxford and Cambridge and involves the biomedical, computer, environmental and aerospace sectors
- research is conducted by both government bodies ( national health service or ministry of defence, environment agency) and private organisations such as pharmaceutical companies
what effect have science parks had on the economy
- they employ recent graduates to apply academic knowledge to business innovation
- many businesses benefit from collaboration and share facilities
- science parks are generally located on the edge of university cities such as Southampton, oxford and Cambridge benefitting from good transport links and often enjoying attractive working environments
- there are over 100 science parks in the UK employing over 75,000 people
e.g Cambridge science park is located 3km from Cambridge city centre -> has access to the A14 (to the midlands) and M11 (to London) -> Abcam is a biomedical company that is worth over £1 billion and employs over 200 qualified graduates
what effect have business parks had on the economy
- usually involve a small group of businesses on a single plot of land
- there are hundreds of business parks in the UK, usually located on the edges of towns and cities where land is relatively cheap and there are good road communications
- they can involve retail and small scale manufacturing, as well as research and development
- in supplying goods and services they often benefit from close association with each other ( e.g printing company providing print materials for other companies in the business park)
what were the impacts of industrial growth on the physical environment in the past
- waste materials are often toxic, polluting the land and water supplies
- gas and soot emissions from burning coal polluted the air, resulting in smog’s mostly in London in the 1950’s
- landscapes in coal mining areas became transformed by ugly spoil heaps
in the past what were the effects of quarrying on the environment
- natural habitats were damaged or destroyed
- landscapes were destroyed, often leaving ugly scars when quarries were abandoned
- water sources were polluted, particularly if toxic chemicals were used
- there was extensive noise pollution and damage caused by huge lorries which transported the quarry stone
- exhaust emissions caused atmospheric pollution
what are the strict controls on quarrying now
- strict regulations on blasting, removal of dust from roads and landscaping
- all quarries have to be restored after use, minimising long term environmental damage
describe Torr quarry in somersets location and economic attributes
- a limestone quarry in the Mendip hills, south of Bristol
- employs over 100 people and contributes around £15 million to the economy each year
- limestone chippings produced at the quarry are mostly used in the construction industry