5.3.1
Migration & Capital
Migration
Migration
UK government decisions on international migration and capital markets have had significant impacts on the potential for growth and investment.
The UK and migration
The UK and migration
- The UK target for net migration is currently 100,000 people per year.
- Net migration = number of immigrants − number of emigrants.
The European Union (EU)
The European Union (EU)
- The UK is not part of the Schengen area in the EU, where people can move almost freely without a passport and border controls.
- The Schengen area has come under pressure from the recent influx of migrants from places like Syria.
- But, migrants from the EU can come and live and work in the UK.
- The vote to Leave the European Union may affect this in years to come.
Positive economic effect of migrants
Positive economic effect of migrants
- Most economists agree that migrants have a positive effect on economic growth and cultural diversity.
- More culturally diverse nations are often better innovators.
- Many migrants fill skills shortages and work as doctors/nurses in the NHS, and as labourers in construction and farming.
- Most European and international migrants are from a desirable demographic. They are young adults who will work and pay taxes, rather than claiming welfare benefits or pensions.
- Many migrants are students who may stay in the country and pay tax revenues in the future or contribute important research.
Negative economic effect of migrants
Negative economic effect of migrants
- Some people argue that migrants put more pressure on local services (schools, housing and hospitals).
- Although migrants may benefit the economy as a whole, some European workers may be hired instead of a British worker if the employer thinks they are more talented.
Capital
Capital
Apart from labour, capital is another important contributor to the economic and social success of an area.
Deregulation
Deregulation
- The Conservative government deregulated a large portion of the financial services sector under Margaret Thatcher in 1986.
- Since then, there has been a huge amount of Foreign Direct Investment (FDI) into financial services in the UK, particularly in London.
- But, the 2008 financial crisis was partly caused by a failure to regulate commercial and investment banks.
London
London
- The City of London (located around Bank tube station) has benefited hugely from the growth of the UK financial services industry.
- Hedge funds like GLG, asset managers like Blackrock and banks like Bank of America, have offices in this area. Lots of retail, grocery and restaurant services businesses support the city.
- Canary Wharf in East London was developed largely for the financial services sector. Barclays and JP Morgan have very large offices in Canary Wharf.
- Financial services have supported the commercial property, residential property, retail and services sectors in London.
Leaving the EU
Leaving the EU
- Many banks are relocating jobs to the European Union after the decision to leave the EU.
- This may not harm the financial services industry too much, but in the past, Venice, Antwerp and Berlin have all been huge financial centres and are not any more.
1Tectonic Processes & Hazards
1.1Tectonic Processes & Hazards
1.2Natural Disasters
1.3Natural Disaster Case Studies
1.4Trends & Patterns
2Option 2A: Glaciated Landscapes & Change
2.1Glaciated Landscapes Over Time
2.2Periglacial Landscapes
2.3Glacial Processes
2.4Glacial Landforms
3Option 2B: Coastal Landscapes & Change
3.1Coastal Landscapes
3.2Coastal Erosion & Deposition
3.3Coastal Risks
4Globalisation
4.1Globalisation
4.2Negatives of Globalisation
4.3Global Shift
4.5Culture
4.6Measuring Development
5Option 4A: Regenerating Places
5.1Types of Economies
5.2Function of Places
5.3Regeneration
5.4Regeneration Case Studies
6Option 4B: Diverse Places
6.1Population Structure
6.2Past & Present Connections
6.3Urban & Rural Spaces
6.4Diversity
6.5Urban & Rural Case Studies
6.6Case Study - Tower Hamlets
6.7Case Study - Sturton-le-Steeple
7The Water Cycle & Water Insecurity (A2 only)
7.1Hydrological Processes Global to Local
7.2Influences on the Water Cycle
7.3Water Insecurity
8The Carbon Cycle & Energy Security (A2 only)
8.1The Carbon Cycle
8.2Energy Consumption
8.3Alternative Energy
8.4Growing Demand for Resources
9Superpowers (A2 only)
9.1Superpowers
9.2Hard & Soft Power
9.2.1Hard & Soft Power
9.2.2Emerging Powers - China Rivalry
9.2.3Emerging Powers - Chinese Sources of Power
9.2.4Emerging Powers - Brazil
9.2.5Emerging Powers - Russia
9.2.6Emerging Powers - India
9.2.7Theories of Development
9.2.8Power Case Studies: Chinese One Belt One Road
9.2.9Power Case Studies: Pakistan Nuclear Arms
9.2.10Power Case Studies: OPEC
9.3IGOs, TNCs & Alliances
10Option 8A: Health & Human Rights (A2 only)
10.1Human Development
10.2Role of Governments & IGOs
10.3Human Rights
10.4Interventions
11Option 8B: Migration & Identity (A2 only)
11.1Globalisation & Migration
11.2Consequences of Migration
11.3Nation States
11.4Responses to Global Migration
Jump to other topics
1Tectonic Processes & Hazards
1.1Tectonic Processes & Hazards
1.2Natural Disasters
1.3Natural Disaster Case Studies
1.4Trends & Patterns
2Option 2A: Glaciated Landscapes & Change
2.1Glaciated Landscapes Over Time
2.2Periglacial Landscapes
2.3Glacial Processes
2.4Glacial Landforms
3Option 2B: Coastal Landscapes & Change
3.1Coastal Landscapes
3.2Coastal Erosion & Deposition
3.3Coastal Risks
4Globalisation
4.1Globalisation
4.2Negatives of Globalisation
4.3Global Shift
4.5Culture
4.6Measuring Development
5Option 4A: Regenerating Places
5.1Types of Economies
5.2Function of Places
5.3Regeneration
5.4Regeneration Case Studies
6Option 4B: Diverse Places
6.1Population Structure
6.2Past & Present Connections
6.3Urban & Rural Spaces
6.4Diversity
6.5Urban & Rural Case Studies
6.6Case Study - Tower Hamlets
6.7Case Study - Sturton-le-Steeple
7The Water Cycle & Water Insecurity (A2 only)
7.1Hydrological Processes Global to Local
7.2Influences on the Water Cycle
7.3Water Insecurity
8The Carbon Cycle & Energy Security (A2 only)
8.1The Carbon Cycle
8.2Energy Consumption
8.3Alternative Energy
8.4Growing Demand for Resources
9Superpowers (A2 only)
9.1Superpowers
9.2Hard & Soft Power
9.2.1Hard & Soft Power
9.2.2Emerging Powers - China Rivalry
9.2.3Emerging Powers - Chinese Sources of Power
9.2.4Emerging Powers - Brazil
9.2.5Emerging Powers - Russia
9.2.6Emerging Powers - India
9.2.7Theories of Development
9.2.8Power Case Studies: Chinese One Belt One Road
9.2.9Power Case Studies: Pakistan Nuclear Arms
9.2.10Power Case Studies: OPEC
9.3IGOs, TNCs & Alliances
10Option 8A: Health & Human Rights (A2 only)
10.1Human Development
10.2Role of Governments & IGOs
10.3Human Rights
10.4Interventions
11Option 8B: Migration & Identity (A2 only)
11.1Globalisation & Migration
11.2Consequences of Migration
11.3Nation States
11.4Responses to Global Migration
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