The Changing Economic World HIC Case Study: The UK Flashcards
How has the UK’s employment structure changed over time?
1800:
Primary - 75%
Secondary - 15%
Tertiary - 10%
1900:
Primary - 30%
Secondary - 55%
Tertiary - 15%
2006: Primary - 2% Secondary - 15% Tertiary - 74% Quaternary - 9%
What is globalisation?
The way businesses, ideas, and lifestyles spread across the world. It has been made possible by developments in transport, communications, and the internet.
How has globalisation led to changes in the UK economy?
It has been partially responsible for the increase in people working in the tertiary sector through global brands and products, research, and ICT. It has contributed to a decline in UK manufacturing.
What are the impacts of globalisation on the UK economy?
Economic growth - usually 1-2% per year, mainly to do with increased trade
Cheaper goods and services - as a result of cheap labour
Foreign investment - creating new ideas, jobs, and technology
High-value production - e.g. information technology
Migration - both in and out
Less manufacturing - goods are imported from abroad e.g. China
Outsourcing jobs - causing unemployment and lower wages
Inequality - low-paid workers cannot negotiate better pay as easily as companies can outsource
What is de-industrialisation?
The decline of manufacturing industry and subsequent growth in tertiary and quaternary employment
Why has de-industrialisation occurred in the UK?
Machines and technology have replaced people
Other countries where labour is cheaper can produce cheaper goods
A lack of investment
Outdated machinery make UK products more expensive
What has happened to shipbuilding, iron and steel, coal mining, and chemical industries in the North East?
Shipyards, once found in cities like Newcastle, have closed and moved to countries like South Korea and China
As shipyards closed demand for steel fell; the last steelworks closed in 2015
No coal mines are left today
The chemical industry has declined slightly, but many plants remain open
What has been the impact of deindustrialisation on the North East?
Many were left unemployed
Many towns have still not recovered, as other businesses also left
Unemployment remains high and wages are low, so new businesses struggle to survive
How has the government responded to deindustrialisation?
Investment in new infrastructure
Encouraging foreign investment from TNCs
Setting up a regional development agency, then a local enterprise partnership
How did nationalisation led to changes in the UK economy?
1945-1979: The government was very involved in the economy and nationalised several parts e.g. healthcare with the NHS (1948) and railways under British Railways (1948) under the post war Labour government. Over time these industries generally stagnated, with ageing equipment, outdated working practices, and many employees. Often they were run at a loss to prevent mass unemployment. In the 1970s strikes, social unrest, and power cuts were common
How did privatisation led to changes in the UK economy?
1979-2010: Under Conservative governments of Margaret Thatcher and John Major many state-run industries were sold off to private shareholders to create a more competitive business environment (privatisation). The idea was that consumers would benefit from lower prices as a result of competition, inefficient businesses would fail, and the best would rise to the top. Many derelict industrial areas were transformed into financial centres e.g. Canary Wharf, while many northern industrial towns were decimated and faced widespread unemployment and social deprivation
How have government policies after 2010 led to changes in the UK economy?
The government aims to ‘rebalance’ the economy by rebuilding the manufacturing sector and relying less on services, especially the financial sector. Policies include improvement to transport infrastructure e.g. HS2 and Crossrail, more investment in manufacturing, easier access to loans, especially for small businesses, and encouraging TNCs to locate within the UK
What is the UK’s post-industrial economy like?
It is a service sector economy. Companies in this economy are sometimes called footloose because they are not tied to any location. The quaternary sector is rapidly growing, sometimes described as the knowledge economy as it is highly skilled and develops new ideas - almost everyone has a degree, followed by specialist training. It includes IT, biotechnology, new creative industries, and research and involves ~15% of the UK workforce.
What are the top 5 UK cities for growth potential?
Cambridge Reading Manchester Bristol Oxford
What is growth potential?
The potential of a city to expand and develop. Cities are given a score based on the number of quaternary industries with potential for growth, a highly skilled workforce, new start-up businesses with potential for growth, and good transport connections.
What are growth corridors?
Chains of cities following major transport routes where the fastest economic growth is happening
What is the research sector?
Part of the quaternary sector, often involving universities, private companies, and government bodies creating new products. It employs >60,000 people and contributes ~£3bn to the UK economy, as profit margins are very high
How has IT transformed the way people live and work?
Large amounts of data can be stored and accessed
The internet allows for worldwide communication
People can work from home, reducing commuting times
Over 1.3 million people work in the IT sector
What is a business park?
An area of land occupied by a cluster of businesses
Why are business parks usually located on the edge of towns?
Land is cheaper
Businesses can extend if more land is available
Businesses can benefit from working together
Access is better with less traffic congestion
What is a science park?
A group of scientific and technical knowledge-based businesses located on a single site. There are >100 in the UK, employing ~75,000 people. They often have good links with universities so have a source of skilled employees and research facilities, good transport links, facilities like meeting rooms and high speed broadband, and attractive locations
What types of industries are based on the M4 corridor and why?
Hi-tech industries, such as technology: Microsoft, Sony, and Vodaphone are based in business parks there
It is near universities, Heathrow Airport and London, has cheaper rents than London, has good rail and road links, and a good environment
How is important is the M4 corridor in the UK’s economy?
It is estimated that it produces 8% of the UK’s economic output, as much as Manchester and Birmingham combined
Why does London attract businesses in the quaternary sector? Give an example
The workforce is younger and better educated
Similar companies are in close proximity, so ideas and workers can move easily
New businesses require less space than the first generation of hi-tech industry
Google has opted to move to London rather than the M4 corridor
Why are more than 1500 IT and biotechnology companies based in Cambridge?
It is close to London, about 80 kilometres north, close to the M11
Cambridge University, the UK’s top ranking university for sciences, is located there, so many highly educated graduates live there
Many colleges make use of the industry and form links
Many graduates set up companies
What is the significance of Cambridge’s science park?
It kick started the rise in hi-tech industry in Cambridge. It was opened in 1970 by Trinity College and also started the trend of colleges making links with industry, which encouraged businesses to start up.
