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
Explain how the development of information technology helps to move the UK towards a post-industrial economy
Development of information technology:
Over 1.3 million people work in the IT sector and the UK is one of the world’s leading digital economies
EE’s 4G network now covers 99% of the UK population with over 50% have 5G network
Explain how service industries help to move the UK towards a post-industrial economy
Service industries:
The UK services sector has grown rapidly since the 1970s, and contributes over 85% of the UK’s GDP
Retail employs 4.4 million people
The UK emplys around 60,000 highly-qualified people
75% - 80% of the UK economy is related to the service sector
Explain how finance helps to move the UK towards a post-industrial economy
Finance: UK is the world’s leading centre for financial services and accounts for about 10% of the UK’s GDP
10% of the UK economy is the finance sector
The London Stock Exchange is the 6th largest in the world
The UK especially London is home to many global financial institution e.g. HSCS global
Explain how research helps to move the UK towards a post-industrial economy
This sector employs over 100,000 highly qualified people and contributes over £13bn to the UK economy e.g. British Antarctic Survey: employs over 500 skilled and professional staff from several areas of expertise in Cambridge, Antarctica and the Arctic
The Medical Research Council funds the world leading research
15 of the top 100 universities are UK based (Oxford, Cambridge, Imperial, UCL and LSE regularly in top 10)
Explain how science parks helps to move the UK towards a post-industrial economy
Science parks are research based and employ recent graduates with scientific and technical knowledge. They are usually based on a single site and linked to a university, allowing the use of research facilities. There are over 130 UK science parks that employ over 120,000 people
Explain how business parks helps to move the UK towards a post-industrial economy
Business parks: Areas of land occupied by a cluster of businesses located on the urban fringes where land is cheaper and readily available with less congestion, and businesses can benefit from collaboration e.g. printing companies can provide materials for other businesses in the park
Businesses can benefit from supplying goods and services to each other.
When was cambridge science park established and who was it opened by
Cambridge science park was established in 1970
Opened by Trinity College
How far away is Cambridge Science park from Cambridge University and Cambridge City Centre
Cambridge Science Park is a 13 minute drive away from Cambridge University
About 3km to the north of Cambridge City Centre
How many science parks in the UK
How many people are employed
There are over 100 science parks in the UK, employing around 75,000 people.
Why are university graduates often employed to work in science parks
Graduates are often employed to apply their knowledge and experience to innovative businesses. Businesses often have close links to local universities and tap into their research and development.
How do many high tech companies start up in the Science Park
Investors donate money to the University which the University uses to fund research in the Science Park. The high tech businesses are brought in by the University to carry out the research
State the advantages of Cambridge Science Park
- Situated on the outskirts of Cambridge near the junction of the
A10 and A14, and close proximity to housing areas for
workforce.
Good transport links, including the M11 motorway to London and Stansted Airport. The M11 motorway, which links with the
rest of the network; quick and easy access to other major
settlements, especially London.
Graduates from the university provide a highly educated workforce
There are few traditional industries to compete for space so rents are lower
There are good links between colleges and industry. This helps develop new business deals
Give two reasons why there has been a growth in the number of science parks
in the UK
they help to support new and growing businesses through
research and new ideas
* many of the firms located in science parks are connected with
information, high-technology and electronic industries
State the disadvantages of Cambridge Science Park
The city is overcrowded and congested, making it difficult to drive or park
House prices are high and still rising, making it expensive to live there.
Road and rail routes need o be improved, to speed up connections to other cities apart from London
