UK Economy Flashcards
Define primary industry
An industry involved in the extraction and collection of natural resources such as copper and timber, as well as by activities such as: farming and fishing
Define secondary industry
To make products that are more likely to be consumed by individuals. Examples include, making steel, shiips or textiles (manufacturing)
Define tertiary industry
Jobs in the service industry such as health care, officies, financial services are retail
Define quaternary industry
Knowledge-oriented economic sectors such as information technology, media, research and development, and information-based services)
State some of the causes of economic changeq
De-industrialisation and the decline of traditional industrial base
Globalisation
Government policies
Define industrial structure
Industrial structure refers to the percentage of employment in the primary, secondary, tertiary and quaternary sectors of the industry within an economy
What are the three stages which show the change in the UK’s economy over time
Pre-industrial stage: Most people worked in the primary sector:
Farming or mining (1700-1750)
Industrial stage: More people moved into the secondary sector of manufacturing (1750 -1970)
Post-industrial stage: Emphasis is on service based tertiary sector and quaternary sectors of research and ICT (1970 - modern day)
Define de-industrialisation
The movement of the economy away from manufacturing
Describe how de-industrialisation is a cause of economic change in the UK
De-industrialisation saw the decline in the UKs traditional manufacturing industries and growth in the tertiary and quaternary sectors due to:
Global shift of manufacturing to NEEs where labour costs are cheaper, longer working hours and trade unions have no influence
Mechanisation reduced production costs and the need for manual labour
Define Globalisation
Globalisation is the growth and spread of ideas globally
Describe how globalisation is a cause of economic change in the UK
Globalisation has led to more businesses in the UK being owned by companies based in other countries. In the same way, UK companies now own more businesses in other countries. For the UK economy to be prosperous, we need to be part of the global economy. This contributed further to a decline in manufacturing
State the impacts of globalisation in the UK
Migration – Migrants fill jobs with a shortage of skilled workers in the UK, such as in healthcare and construction.
Less manufacturing – Fewer goods are manufactured in the UK because they can be imported more cheaply from countries such as China, where wages are lower.
Foreign investment – foreign companies invest in the UK, bringing new ways of working and technology. This provides jobs and skills development to people living in the UK.
Economic growth – in most cases, the UK economy increases by 1-2 per cent each year. This is mainly down to trade with other countries, helping the country become wealthier.
Describe how government policies is a cause of economic change in the UK
There have been three distinct trends in government policy since the Second World War:
1945-79 – state-run industries, such as British Steel Corporation, were set up by the government to support declining heavy industries and protect jobs. However, outdated working practices and machinery lead to factory closures, unemployment and unrest during the 1970s.
1979-2010 – government-run industries were privatised, and many heavy industries closed down, leading to job losses.
Private sector and government investment led to the transformation of many former industrial areas, such as London Docklands, into financial centres (such as Canary Warf in London), offices, and retail parks as the service sector began to grow rapidly.
2010 onwards – the government has attempted to rebalance the economy by encouraging investment in high-tech manufacturing, such as aerospace and computer engineering.
In addition, significant investment has been made in transport infrastructure, such as London’s Crossrail. HS2 is also being developed to provide high-speed rail links between London and the ‘Northern ‘Powerhouse’.
The development of small businesses is also being encouraged through low-cost loans and other financial incentives.
What is a post-industrial economy
A post-industrial economy is one where manufacturing industry declines to be replaced by growth in the service sector and corresponding development of a quaternary sector
State how the UK is moving towards a post-industrial economy
Development of information technology
Service industries
Finance
Reasearch
Science and Buisness Parks
