UK economic world

• What is the primary sector?

  Involves extracting raw materials form the environment e.g mining and fishing
• What is the secondary sector?

  the part of the economy that transforms raw materials into manufactured goods
• What is the tertiary sector?


  Selling of services and skills
• What is the quaternary sector?

  knowledge sector (research and development )
• How has the UK's employment structure changed form 1800 to 1900 to 2006


  Primary: 75, 30, 2

  Secondary: 15, 55, 15

  Tertiary: 10, 15, 74

  Quaternary: 0, 0, 9

  
  

  preindustrial, industrial, deindustrialisation, post industrial
• What is deindustrialization?


  decline in industrial activity in a region or economy.
• Reasons for deinstitutionalisation?


  1. Exhaustion of raw materials

  2. Loss of markets

  3. Competition with NEE's
• Why did UK companies move their factories abroad?

  1. Cheap labour

  2. Uk has rules and legislations

  3. Exploit other countries natural resources
• What does deindustrialisation lead to?

  Reverse multiplier effect / spiral of decline
• What is globalisation?


  Globalisation is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange.
• Positives of globalisation on UK:

  1. Economic growth due to trade

  2. Cheaper goods and many services

  3. High value production

  4. Migration

  5. FDI
• Negatives of globalisation on UK:

  1. Outsourcing jobs

  2. Less manufacturing

  3. Inequality
• Government response to deindustrialisation:

  1. Investment in new infrastructure

  2. Encourage FDI from large TNC's e.g Nissan gave jobs to 7000 people

  3. Local enterprise partnerships which support businesses, improve skills and plan economic growth
• Evidence UK is a post-industrial economy:

  1. Services have increased from 43% in 1948 to 86% in 2012

  2. Manufacturing has decreased

  3. Agriculture has decreased from 5% in 1948 to 0.5% in 2012
• Why has the UK economy changed?

  1. Globalisation

  2. Competition with NEE's

  3. Deindustrialisation

  4. Advances in technology and growing quaternary sector
• What qualities must a city with potential to grow have?

  1. Good educational intitutions

  2. Well connected transport networks

  3. Proximity to other places

  4. Highly skilled workforce + quaternary industry
• Reasons for business growth in M4 corridor:

  1. Pleasant environment to live and work

  2. Near unis for an educated workforce (expertise and research)

  3. Close to major transport routes (M4 and train to London)

  4. Land price and rent lower than london

  5. Heathrow airport
• What is the HS2 project?

  A high speed railway service providing connections between Euston and Birmingham
• What are the positives of HS2?

  1. Reduce CO2 emissions

  2. Relieve pressure off motorways

  3. Income to Midlands and NE where deindustrialisation has occured

  4. Increase rail capacity

  5. Decrease flights

  6. Jobs

  7. 40 billion income generation
• what are the negatives of HS2?

  1. Mainly London job creation

  2. Could just improve existing routes

  3. Travel intercity is already fast

  4. Spiralling costs (2009 £37.5 bn to 2019 £78 bn)
• Reason for north south divide?

  Huge deindustrialisation occurred in the NE
• Evidence for N-S divide

  1. Poorer education outcomes: South is 40% more likely to achieve top grades

  2. Lower house prices: £154k in North, £305k in south

  3. Lower income: NE is 13k, S is 20k

  4. Higher unemployment: NE is 7.7%, SE is 4.4%

  5. Lower life expectancy
• What is Assisted Area Status?

  1. These areas are acknowledged as less economically advantaged which would benefit additional support for development

  2. Money is given from government to provide new jobs and create new businesses

  3. TNC's are encouraged with tax relief as an incentive
• What are enterprise zones?

  Designated areas across England that provide tax breaks and government support and cheaper planning application
• Way to reduce N-S divide?

  HS2, Enterprise Zones, Assisted Area Status
• Benefits of Elizabeth line (cross rail)

  Better capacity, fast East-West travel, reduces congestion
• Benefits of the London gateway port:

  1. Accommodate largest shipping containers

  2. 200 jobs

  3. 6000 jobs in associated services

  4. Close to largest market in UK (SE)

  5. Reduces need for Road freight, reducing congestion, reducing CO2 emissions
• UK's importance in the wider world:

  1. Commonwealth

  2. NATO

  3. Trading links

  4. British empire (colonies)

  5. British overseas territories

  6. Migration routes

  7. EU
• What is the European Union?

  An organisation that allows the free movement of people, goods and services between the countries.

  19 of the countries share the same currency and often share the same view on democracy and human rights.
• What is the common wealth?

  Organisation of 53 countries

  Nearly 1/3 of worlds population

  most were colonies of British empire

  Shares history, language, head of state

  
  

  brings: trade, cultural links, democracy + rule of law, human rights
• How does staying in the EU negatively affect the UK?

  1. Costly to be a member: cost per head from £300 to £873

  2. May have to support poorer countries by paying more

  3. High unemployment leads to mass migration to the UK
• How does staying in the EU positively affect the UK?

  1. Jobs are generated: 3.5 million over the years

  2. Low prices of goods

  3. Citizens free to move
• How does leaving EU negatively affect UK?

  1. UK seems unfavourable for TNC's and business

  2. Harder for UK to have an international influence
• How does leaving the EU positively affect the UK?

  1. Can forge new trading alliances and be seen as a global player

  2. Save money by not being a member which can be spent developing links with other countries