Causes of Economic Change in the UK
Geography: AQA GCSE, topic 5.2.1
Causes of Economic Change in the UK
The UK's economy is changing and this is being caused by several factors:
De-industrialisation
- The north of England used to be a hub for trade with the United States of America and the British Empire.
- Cotton and textiles were important English-produced commodities.
- Cotton prices in England were benchmarked by the prices that were available in the market by Liverpool's port.
- Since de-industrialisation, there are fewer jobs in manufacturing, in producing goods and in the north of England.
Globalisation
- Globalisation and the internet allow someone in India to communicate with someone in the UK instantly.
- India's English speaking heritage and population have created economic ties with English and American businesses - British Airways outsources its software development to India.
- Globalisation means that businesses compare the cost of doing something in the UK against the cost of doing it in a country where salaries are much lower.
Government policies
- Government policies affect the economy.
- In France, the government owns parts of Renault (cars), Francaise des Jeux (gambling), Air France-KLM (airline), and Orange (mobile phones).
- In the 1980s, the British government sold off lots of their stakes in a movement of 'privatisations'. This means that in many industries there may not necessarily be an English business operating anymore.
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