economic development in the UK

• What are the three main causes of economic change in the UK?

  De-industrialisation, globalisation and government policies.
• How has de-industrialisation led to economic change in the UK?

  • The UK's industrial base declined as increased automation (use of machines) led to job losses in manufacturing industries.

  • As other countries industrialised, they could produce goods more cheaply than the UK - this increased competition forced some UK manufacturing industries to close.
• How has globalisation led to economic change in the UK?

  • A lot of manufacturing has moved overseas, where labour costs are lower, e.g. Marks and Spencer manufactures clothes in India and China.

  • Some TNCs have moved some of their tertiary and quaternary operations to the UK - e.g. Apple employs nearly 6,500 people in the UK.

  • Trade with other countries is an increasingly important part of the UK GDP. The proportion of the UK's GDP that comes from foreign trade increased from 40% in 1965 to 60% in 2017.
• In 2017 what proportion of the UK's workforce was employed by tertiary and quaternary industries?

  83%
• What are the main important industries in the UK?

  Services, finance, information technology and research.
• What makes the services industry important?

  Retail, a part of the services industry, employs about 4 million people in the UK.
• What makes the finance industry important?

  The UK, and especially the city of London, is home to many global financial institutions. Some, for example HSBC, have their global headquarters in the UK.
• What makes the information technology industry important?

  Over 67,000 people work in IT, for companies such as IBM and Microsoft.
• What makes the research industry important?

  Research and development is increasing in the UK, making use of the UK's skilled university graduates. In 2016, over £33 billion was spent on R&D in the UK.
• Where are quaternary industries increasingly found?

  In science and business parks.
• Where are science and business parks usually located and why?

  • On the outskirts of cities near to housing and good transport links, e.g. motorways and airports.

  • Near universities so that research businesses in science parks can work with university researchers.
• Why has the number of science and business parks grown?

  • There is a large and growing demand for high-tech products. Science parks can help develop new technology for these products.

  • The UK has a high number of respected research universities for businesses on science parks to form links with.

  • Clusters of related businesses in one place can boost each other.
• What are the impacts of industry on the physical environment?

  • Factories may release pollutants or greenhouse gases, and running them uses lots of energy and water.

  • Extracting raw materials, e.g. mining, can also damage the environment by destroying habitats and releasing toxic chemicals into water sources.
• Why are modern industrial developments more environmentally sustainable than older industrial plants?

  Due to increasing energy and waste disposal costs, stricter environmental regulations and better awareness.
• Give an example of how modern industrial development has been made more environmentally sustainable.

  The Unicorn Group manufactures various products (e.g. bins and floor tiles) in Lisburn, Northern Island. It's made production more sustainable by installing solar panels and biomass boilers in its factory and getting 100% of its electricity from renewable resources. Unicorn Group has also reduced waste by recycling left over steel and plastic.
• Give examples of strategies used to reduce the north-south divide.

  Devolving more powers, creating enterprise zones, the northern powerhouse.
• How does devolving more powers help to resolve regional differences?

  Scotland, Wales and Northern Ireland have their own devolved governments, and some powers are being devolved to local councils in England as well. This allows them to use money on schemes that they feel will best benefit the local community, e.g. better transport or regeneration projects to turn disused buildings into modern office spaces to attract more businesses.
• How has the creation of the Northern Powerhouse helped to resolve regional differences?

  The Northern Powerhouse is the government's plan to reduce inequality between the north and south by attracting investment to the north and improving transport links between northern cities. The plan includes working to extend the coverage of superfast broadband and spending £70 million on improving schools.
• Why has the Northern Powerhouse been criticised?

  It has been criticised for being more of a concept than an actual plan - it's not always clear how the money is promised is going to be spent. Critics have also pointed out that it focuses on Manchester and other big cities but ignores smaller towns and cities.
• How is the UK connected to the wider world through trade?

  The UK trades globally, and its overseas exports are worth over £160 billion per year. Links to the USA, Europe and Asia are particularly significant.
• How is the UK connected to the wider world through culture?

  The UK's strong creative industries mean that UK culture is exported worldwide, e.g. the 'Shaun the Sheep' TV series made by Aardman Animations in Bristol is shown in 170 countries.
• How is the UK connected to the wider world by transport?

  The Channel Tunnel links the UK to France, providing a route to mainland Europe. Immigration has helped shape the UK's culture, leading to cultural diversity in food, art, music etc.
• How is the UK connected to the wider world by electronic communication?

  Telephones and the internet make it easier for people in the UK to communicate with people in other countries, strengthening the UK's overseas links. Trans-Atlantic cables (carrying phone lines and internet connections) linking Europe with the USA are routed via the UK.
• Give examples of the UK's economic and political links with the wider world.

  The European Union (EU) and the Commonwealth.
• How did the European Union help to strengthen the UK's links to the wider world?

  The EU is an economic and political partnership of 27 countries. Goods and people can move freely between EU countries, strengthening links between members. However, the UK left the EU in 2019.
• How does the Commonwealth help to strengthen the UK's links to the wider world?

  The Commonwealth is an association of 53 states, including the UK and many of its former colonies. It promotes co-operation between member countries, e.g. through trade, aid and sport.