UK economy * Flashcards
Which three factors caused economic change in the UK?
globalisation
government policies
deindustrialisation
What is globalisation?
the way in which the world has become more interconnected
What has globalisation led to?
an increase in world trade, foreign investment and communication between different countries and the sharing of ideas
What is the commonwealth?
an association comprising the UK, its dependencies, and many former British colonies
What has happened to the manufacturing industry?
dramatically decreased
from about 55% to about 9%
How do government policies manage the UK economy?
through the treasury - each year a budget is produced, which sets things such as minimum wage, spending on public services and levels of tax
How does encouraging foreign investment from large transnational companies like Nissan help?
- employs 7000 people - brings jobs and money to the area which supports many other UK businesses
- also encourages other countries to locate here
How did privatised companies make money for the government?
they were owned by the government and then sold to individuals or other companies
What happened when markets were deregulated?
the government became less involved in running things and some companies had to find better ways to make a profit
What was the impact of lots of factories and coal pits being closed?
lots of UK jobs lost and they began to go overseas
Which sector grew the most after the manufacturing sector declined?
the service sector
What is deindustrialisation?
the decline of the manufacturing industry
What is a post industrial economy?
where manufacturing industry declines to be replaced by growth in the service sector and the development of a quaternary sector
this happened in the service sector
There was a decrease in secondary sector jobs, meaning more …… jobs were created?
tertiary and quaternary
Which industries have developed and grown in the post-industrial economy?
IT, finance, research
What are science and business parks?
special places for company offices
they are often found on the edge of cities like Cambridge, where there is good accessibility
also located near universities to develop an educated work force
How have roads been developed?
resurfacing and building new roads
smart motorways
How have railways been developed?
the planned building of the new highspeed rail the HS2, which will cost around £43 billion
it will dramatically cut journey times and connect the north and the south
How have ports been developed?
the London gateway on the thames estuary which opened in 2013
it can accommodate the largest container ships in the world
How have airports been developed?
a third runway in heathrow airport
estimated to generate around £147 billion over 60 years
How does investment in infrastructure help?
- improving transport allows businesses to move easier around the UK
- spreads economic growth to northern cities
What is sustainability?
development that meets the needs of the present without limiting the ability of future generations to meet their own needs
Where is the nissan factory and how many people does it employ?
In sunderland
employs 7000 people
How much energy does the nissan factory obtain from wind energy?
7%
How are cars designed now?
using materials that can be readily recycled which reduces the amount of waste going to landfill
electric cars like the nissan leaf and hybrids
more fuel efficient and tighter restrictions on gas emissions
Why is car manufacturing valuable to the UK economy?
contributes over £77 billion to the UK economy
employs over 800000 people in the UK alone
relies on other secondary industries meaning they employ more people indirectly
Why did nissan locate in sunderland?
sunderland suffered from deindustrialisation meaning government policies attracted foreign companies to the area
also close to major cities and trade routes
What are three environmental impacts of car manufacturing?
- air pollution
- components that cant be recycled are sent to landfill
- manufacturing and transporting cars uses a lot of energy which is usually made by burning fossil fuels
What is the north/south divide?
deindustrialisation in the north and new businesses in the service sector setting up in the south of England has created a wealth divide between the rich south and the poor north
What is the impact of the north/south divide on the north?
they experience lower incomes, higher unemployment and a lower standard of living
What are the two exceptions from the north/south divide?
London has a booming economy but one of the highest unemployment rates in the south
Scotland has a lower unemployment rate than other regions in the north due to the wealth from north sea oil and to Scotland having its own government
there are also individual cities that are exceptions
Give three strategies to reduce the north/south divide
Why do they help?
- planned transport improvements such as the HS2 and port developments
reduces journey times between london and northern cities which takes pressure of the existing road and railway network and allow the economy of the north to develop - enterprise zones that encourage new businesses to set up in deprived areas
- government incentive packages to locate manufacturing plants in the north, such as nissan in sunderland
generates jobs in the area reducing unemployment and putting money into the regional economy. this allows the economy of the north to develop and compete with that of the south
What is a workless household?
a household where everyone is unemployed
What are assisted areas?
areas of the UK that are less economically advantaged are given financial assistance to support new businesses setting up in these areas
Why is the population declining in remote areas?
younger people move to find work elsewhere and property prices can be high as the demand for second homes are pushing local people out of the property market
Why is the population growing in places close to urban areas?
counterurbanisation - people move out of urban areas in search of a better quality of life, they move to areas close by so they can commute to jobs in urban areas
What is an example of population decline in rural areas?
the outer hebrides which are located in the north west of scotland
What is an example of population growth in rural areas?
south cambridgeshire which is located in the south east of england
What is the population of south cambridgeshire and why is it increasing?
population of around 150000 and is increasing due to migration to the area - mostly from the city of cambridge but some are starting to arrive from eastern europe
Give three other reasons for population growth in south cambridgeshire
- increase in the number of commuters because of improvements in transport
- flexible working - online work environment
- near to main roads and cambridge/london
What is a benefit of population growth in south cambridgeshire?
more local facilities will benefit like shops pubs and primary schools
more jobs will be created in construction and building new houses
What is a challenge of population growth in south cambridgeshire?
a lot of people will commute to work meaning local facilities wont be used as much in the day time having. negative affect on the local rural economy
What is the population of the outer hebrides and how much has it declined since 1901?
population of 27400 and has declined by 50% since 1901
Give two strategies that would encourage people to stay or move to the outer hebrides
greenspace center which specialises in renewable energy research
tourism - the islands have stunning scenery and rare wildlife, and events like the annual hebridean celtic music festival
