Paper 2. Changing Economic World 2

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1 Paper 2 Changing Economic World 2

2 Key idea: Major changes in the economy of the UK have affected, and will continue to affect, employment patterns and regional growth.

3 Specific content: Economic futures in the UK: causes of economic change: deindustrialisation and decline of traditional industrial base, globalisation and government policies De-industrialisation: The decline of a country's traditional manufacturing industry due to exhaustion of raw materials, loss of markets and competition from NEEs.

4 Specific content: Economic futures in the UK: causes of economic change: deindustrialisation and decline of traditional industrial base, Primary sector - industry, such as mining, agriculture, or forestry, that is concerned with obtaining or providing natural raw materials for conversion into products. Secondary Sector - industry that converts the raw materials provided by primary industry into commodities and products for the consumer; manufacturing industry. Tertiary Sector - part of a country's economy concerned with the provision of services Quaternary sector - consists of those industries providing information services, such as computing, ICT (information and communication technologies), consultancy (offering advice to businesses) and R&D (research, particularly in scientific fields).

5 Specific content: Economic futures in the UK: causes of economic change: deindustrialisation and decline of traditional industrial base, Reasons for de-industrialisation Increase in machines and technology These have replaced people in many modern industries e.g. car production Cheaper goods abroad Lack of investment Because people will work for less Results in high labour costs and outdated machinery, which means products from the UK are more expensive

6 Specific content: Economic futures in the UK: government policies onwards State run industries e.g. the Post Office Government money spent on declining industries Too many employees made industry unprofitable Strikes, social unrest and power cuts Winter of Discontent in 1979 saw many strikes by public sector unions Lots of factory closures e.g. DUNLOP PLANT, Speke State run industries sold to private share holders to create competitive business environment e.g. the privatisation of British Rail Older industries closed down and jobs lost Private companies brought change Derelict industrial areas were transformed into new financial centres Encouraging global firms to locate in the UK e.g. Haribo, St Helens Rebuilding of the manufacturing sector Relying less on financial sector Improvements to infrastructure e.g. 1.5 billion of investment to add an extra lane onto key motorways to turn them into smart motorways, boosting connectivity between London, Birmingham, Manchester and Yorkshire. More investment in manufacturing industries Easier access to loans and finance for small businesses

7 Specific content: Economic futures in the UK: globalisation How has globalisation affected the UK economy? 1. More trade 2. Reduced manufacturing in the UK due to cheaper imports (loss of jobs) 3. People in the UK work on global brands e.g. Haribo, St Helens Internet Transport Communications

8 Specific content: Economic futures in the UK: moving towards a post-industrial economy: development of information technology, service industries, finance, research, science and business parks Moving towards a post industrial economy Development of information technology, service industries, finance, research, science and business parks Key Term: Post-industrial economy The economy of many economically developed countries where most employment is now in service industries.

9 Specific content: Economic futures in the UK: moving towards a postindustrial economy: development of information technology, service industries, finance, research, science and business parks A business park is a cluster of businesses (offices and warehouses) located on the edge of a city and near main roads, whereas a science park is a cluster of science based high-tech based businesses located together near a university where scientific research and commercial development may be carried out in cooperation with the university.

10 1. Facilities for workers to use in their free time happy workers are more productive and will attract businesses encouraging them to locate here. 5. Easy access to St Helens town centre, the link road and motorways for workers. But on the outskirts because land is cheaper with more space for expansion. 2. Ample parking for workers and visitors as most will travel by car. These are all key features of Alexandra Business Park, St Helens Restaurant facilities for workers for their lunch breaks, meaning they do not need to leave the business park. 4. Pleasant surroundings to attract businesses to locate here and keep the workforce happy and more productive

11 Specific content: Economic futures in the UK: moving towards a postindustrial economy: development of information technology, service industries, finance, research, science parks. Science Parks: There is a science park in Liverpool because: Liverpool s universities are also some of the best in the world; dedicated to research and development. Liverpool science park has excellent IT infrastructure. Liverpool Lime Street station is 0.5 miles away, which connects the park with Liverpool Airport, Manchester, London and internationally. Liverpool Science Park s location is close enough to some of Liverpool s highest quality restaurants. This is excellent for business meetings.

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