Economy in the UK

Contents: I. Currency II. Trade in the UK III. Industries in Britain IV. Farming and agriculture V. Employment and working in Britain VI. Transport The United Kingdom has a mixed economy. It is the fifth largest economy in the world and the second largest economy in Europe (after Germany). The capital, ondon, is one of the two largest financial centers in the world, along with !ew "or# $ity. The UK economy is one of the strongest in Europe% inflation, interest rates, and unemployment remain low. I. Currency The currency of the UK is the pound sterling, represented &y the sym&ol . The 'an# of England is the central &an#, responsi&le for issuing currency. The pound ( ) is made up of ()) pence (p) exactly li#e the dollar is split into ()) cents . The singular of pence is *penny*. The sym&ol for the penny is *p*% hence an amount such as +)p is often pronounced *fifty pee* rather than *fifty pence*. There are &oth coins and &an#notes. Current coins are, ( penny, - pence, + pence, () pence, -) pence, +) pence, ( pound, and - pounds. Current bank notes are, the + pound note, the () pound note, the -) pound note and the +) pound note. II. Trade in the UK The UK is one of the leading trading nations in the world. It is the second largest exporter and third largest importer of commercial services. eading destinations for UK products and ser.ices include,

the U/0 Germany 1rance

Exported products: manufactured goods, fuels, chemicals% food, &e.erages, to&acco. The chemical industry is 'ritain2s largest export earner. 'ritish 3etroleum ('3) is 'ritain2s &iggest industrial company. UK pharmaceutical companies ma#e some of the world2s &est selling medicines. It is also a ma4or supplier of machinery, .ehicles, aerospace products, electrical and electronic e5uipment. 'ritain is responsi&le for () per cent of the world2s export of ser.ices, including &an#ing, insurance, stoc#&ro#ing, consultancy and computer programming. Imported products: manufactured goods, machinery, fuels, and foodstuffs. 1ood, &e.erages and to&acco account for half of non6manufactured imports, whilst machinery and road .ehicles account for two6thirds of finished imported manufactures. 7ther ma4or imports include chemicals, fuels, clothing and footwear.

III. Industries in Britain The main 'ritish industries today are &an#ing and finance, steel, transport e5uipment, oil and gas, and tourism. ondon is one of the world2s great financial centers, which is one of the factors that is commonly considered to ma#e it a world city. $entral ondon contains some of the most expensi.e commercial property in the world &ecause of this. 1rom around the early (88)s ondon has &een a&le to &oast of ha.ing more U./. &an#s than !ew "or#, as well as &eing host to &ranches of more than fi.e hundred o.erseas &an#s. It is the principal financial center of the world, ran#ed alongside !ew "or# and To#yo as one of three where any serious financial player must &e represented. The $ity of ondon has around 9)),))) employees, largely concentrated in the financial and professional sectors. ourism is .ery important to the 'ritish economy. :ith o.er -; million tourists arri.ing in -))<, the United Kingdom is ran#ed as the sixth ma4or tourist destination in the world. ondon, &y a considera&le margin, is the most .isited city in the world with (+.= million .isitors in -))=. !ther industries >achine tools, electric power e5uipment, automation e5uipment, railroad e5uipment, ship&uilding, aircraft, motor .ehicles and parts, electronics and communications e5uipment, metals, chemicals, coal, petroleum, paper and paper products, food processing, textiles, clothing, and other consumer goods. "atural resources 'ritain?s natural resources are,

$oal, petroleum, natural gas 6 found in the 'ritish sector of the !orth /ea, @inc, tin, limestone, iron ore, salt, slate, clay, chal#, gypsum, lead, silica, ara&le land.

Auring the (8th century 'ritain used to ha.e many coal and iron mines and had the natural resources to ma#e textiles, steel and ships. Today, coal and textiles can &e produced more cheaply in other countries and so many 'ritish factories and mines ha.e closed. 7il and gas were disco.ered under the !orth /ea during the (8=)s and new supplies are still &eing found today. Gas has &een particularly important in replacing coal as a fuel for generating electricity. The &usiness of generating electricity from the wind is growing fast as the world loo#s for cleaner ways to produce energy. $oal, oil and gas fired power stations could e.entually &e replaced &y wind farms and other forms or renewa&le energy. In (88;, there were ++) wind tur&ines and o.er 9) wind farms in the UK. The go.ernment has made a promise that ()B of the energy of the UK will come from renewa&le sources &y -)(). England has relati.ely few mineral resources. Cinc, tin, iron ore, and copper are all produced in small 5uantities. 0t one time $ornwall &oasted -,))) tin mines and it was a world leader in tin production.

The main commercial minerals are those used in the construction and &uilding industries such as sand and gra.el, limestone and gypsum. They are normally mined from the surface in 5uarries using hea.y machinery. /maller 5uarries are also found across England and pro.ide stone for the local &uilding industry. This means that many parts of England ha.e a distincti.e appearance according to the local stone a.aila&le. IV. Farming and agriculture 1arming in 'ritain has changed a great deal in the last 9) years. 1arming used to employ a great many people in 'ritain &ut nowadays, with machinery, a few people can run a huge farm of thousands of hectares. 0griculture pro.ides around =) per cent of 'ritain2s food needs e.en though it employs 4ust (.< per cent of the country2s la&or force. 'ritain2s agriculture is under pressure to change at the moment. 1armers are under pressure to adopt more en.ironmentally friendly methods such as organic farming. 7rganic farming does not use artificial chemicals that can damage the en.ironment and human health. Its popularity has grown rapidly in recent years. >ost of the land is suita&le for agriculture, although the largest area is reser.ed for pasture and gra@ing land. Aifferent types of farming occur in different regions of 'ritain. This is due to the influence of relief, climate (especially precipitation and temperature), soil type and to an extent closeness to the mar#et. Upland areas generally lend themsel.es to sheep farming. 1lat areas lend themsel.es to crop production and wetDwarm areas to mil# and &eef production. /ome parts of 'ritain ha.e excellent soil for crops, while others are used for cattle, sheep, pigs and poultry. In the north#$est of England, :ales and /cotland, farmers #eep cattle and sheep. /heep can sur.i.e the cold winters on the hills and moors. In the south#$est of England, the rich grass is ideal for feeding dairy cows. In the south#east of England and the lowlands of /cotland, grain, potatoes and sugar &eet are grown. In the east of England (East 0nglia), wheat, &arley and .egeta&les grow in enormous fields. %rincipal crops: wheat (the most widely grown ara&le crop in the UK) &arley, oats, potatoes, sugar &eet, .egeta&les, oil seed rape, fruits. &ivestock products: poultry, sheep, cattle, mil#, meat, eggs, wool. V. Employment and working in Britain 0&out ;+B of 'ritish 4o&s are in ser.ice industries 6 hotels, restaurants, tra.el, shopping, and computer and finances. It is the fastest growing &usiness and employs o.er twenty million people. The usual wor#ing day starts at 8am and finishes &y +pm. >ost people wor# a fi.e6day wee#. The wor#ing wee# is, on a.erage, the longest of any country in Europe. In (88E a new law was passed saying that wor#ers do not ha.e to wor# more than <E hours a wee# if they don2t want to. Fowe.er, a&out --B of 'ritish wor#ers do wor# more than a <E6hour a wee#. 'ritish employers must gi.e their wor#ers -< days paid holiday a year. $hildren are not legally allowed to wor# until they are (9. Under6(+s can wor# up to fi.e hours on /aturdays (and wee#days in the summer holidays), to a maximum of -+ hours a wee#

during school holidays. They can only wor# two hours maximum on schooldays and /undays. 7.er6(+s can wor# eight hours maximum on /aturdays and school holiday wee#days, and up to 9+ hours a wee# during the holidays VI. Transport Goads and motorways are 'ritain2s primary domestic transport routes. 'ritish people usually tra.el &y car, .an, taxi or &us. >otorcycling is popular in 'ritain, &oth as a means of transport and as a pastime with o.er one million motorcyclists. >ost goods are transported &y roads in lorries.

'uses and Coaches 0nother type of transport is the &us. There are single dec#er and dou&le dec#er &uses

(ightseeing buses There are many sightseeing, open top, &uses in ondon and other cities.

rams rains

The rail networ# in 'ritain is one of the most extensi.e in Europe with o.er ((,))) miles ((;,+))#m) of lines, some -,+)) stations and around (,+)) trains a day.

Interesting )acts 'ritain pioneered railways. The /toc#ton and Aarlington railway ((E-+) was the first pu&lic passenger railway in the world.

he ube

*The Tu&e* is the name of ondon2s underground system The ondon underground railway system (or 2tu&e2, as it is #nown locally) cele&rated its centenary in (88) and is internationally famous, ran#ing alongside the 3aris metro and the !ew "or# su&way. ondon2s tu&e networ# co.ers the largest area of any underground rail system. The tu&e runs to all areas of central and greater ondon, connecting all mainline stations. Interesting )act ondon was the first city in the world to ha.e an underground railway, called the 2tu&e2. The first line was &uilt in (E8). Euro rains The trains tra.el under the sea in a .ery long tunnel called the $hannel Tunnel. The tunnel was completed in (88+ and is +) meters &elow the sea&ed. Eurostar is the high6speed train ser.ice lin#ing ondon, 0shford, 3aris, 'russels, ille, 0.ignon, $alais, Aisneyland Gesort 3aris and the 1rench 0lps. *irports ondon is a ma4or port. It has three airports, which are all located outside the city area, Feathrow, Gatwic# and /tansted. (hips /hipping still remains the main form of cargo transport into and out of 'ritain, despite the opening of the $hannel Tunnel to 1rance in (88<. The &usiest seaport is Ao.er.

Economy of the United (tates

Contents: . ". %. '. *. .. !istory #eneral $ituation Inno&ation (u)lic Transport The +ole o, the -arket (o&erty and Ine/uality

I. History The United /tates has the &iggest national economy in the world. It is the world2s foremost economic power. The main reason the economy of the United /tates &ecame immensely prosperous and inno.ati.e was &ecause it was predominantly free. The 1ounding 1athers esta&lished a political system which recogni@ed the right of the indi.idual to thin# and produce without go.ernment interference. The result was the country2s rise as a world power #nown around the world today. In addition to this essential fact, there are three important ingredients that characteri@e the United /tates economy. The first ingredient of a nation2s economic system is its natural resources. The United /tates is rich in mineral resources and fertile farm soil, and it has a moderate climate. It also has extensi.e coastlines on &oth the 0tlantic and 3acific 7ceans, as well as on the Gulf of >exico. Gi.ers flow from far within the continent, and the Great a#esHfi.e large, inland la#es along the U./. &order with $anadaHpro.ide additional shipping access. These extensi.e waterways ha.e helped shape the country2s economic growth o.er the years. The second ingredient is la&or. The num&er of a.aila&le wor#ers and their producti.ity help determine the health of an economy. Throughout its history, the United /tates has experienced steady growth in the la&or force. hird+ there is manufacturing and in.estment. In the United /tates, the corporation has emerged as an association of owners, #nown as stoc#holders, who form a &usiness enterprise go.erned &y a complex set of rules and customs. II. eneral situation !industry" agriculture#

Industry. The economic system of the United /tates can &e descri&ed as a capitalist mixed economy. Economic acti.ity .aries greatly across the country. 1or example, !ew "or# $ity is the center of the 0merican financial, pu&lishing, &roadcasting, and ad.ertising industries, while os 0ngeles is the most important center for film and tele.ision production. The /an 1rancisco 'ay 0rea is a ma4or center for technology. The >idwest is #nown for its reliance on manufacturing and hea.y industry, with Aetroit ser.ing as the historic center of the 0merican automoti.e industry, and $hicago ser.ing as the &usiness and financial capital of the region. The /outheast is a ma4or area for agriculture, tourism, and the lum&er industry, and, &ecause of wages and costs &elow the national a.erage, it continues to attract manufacturing. The economy is fueled &y an a&undance in natural resources such as coal, petroleum, and precious metals. Fowe.er, the country depends on foreign countries for much of its energy. The U./. has a large tourist industry, ran#ing third in the world, and is also a ma4or exporter in goods such as airplanes, steel, weapons, and electronics. $anada accounts for (8B (more than any other nation) of the United /tates2 foreign trade, followed &y $hina, >exico, and Iapan.

The per capita income of the United /tates is among the highest in the world. *griculture. <;B of the land area of the U/ is farmland, of which (+- million hectares are har.ested cropland and +=) hectares are permanent pastureland, yet only =.- million people li.e on the nation?s -,9)),))) farms. The >idwest is the most important agricultural region in the United /tates, corn and wheat are the main crops, and li.estoc# and dairy farming are also carried out on a large scale. 0lthough the /outh is still important for traditional crops, such as to&acco, corn and cotton, there is now far greater .ariety, while Texas is the nation?s leading producer of cattle, sheep, cotton and rice. The :est is important for cattle and wheat farming in the Great 3lains area, and for fruit in the fertile .alleys of the states that &order the 3acific. "et agriculture accounts for less than 9B of G!3. U/0 is a great importer and exporter of goods and ser.ices, Exports # commodities: capital goods, automo&iles, industrial supplies and raw materials, consumer goods, agricultural products Imports # commodities: crude oil and refined petroleum products, machinery, automo&iles, consumer goods, industrial raw materials, food and &e.erages.

III. Inno$ation The United /tates is an influential country in scientific and technological research. 'eginning early the $old :ar, the U./. achie.ed successes in space science and technology, leading to a space race which led to rapid ad.ances in roc#etry, weaponry, material science, computers, and many other areas. In the sciences, 0mericans ha.e a large share of !o&el 3ri@es, especially in the fields of physiology and medicine. The main go.ernmental organi@ation for a.iation and space research is the !ational 0eronautics and /pace 0dministration. >a4or corporations, such as 'oeing and oc#heed >artin, also play an important role.

The 'oeing ;E; rollout on Iuly E, -));

IV. %u&lic Transport Transportation in the United (tates is facilitated &y road, air, rail, and water networ#s. The .ast ma4ority of passenger tra.el occurs &y automo&ile for shorter distances, and airplane for longer distances. In descending order, most cargoes tra.el &y railroad, truc#, pipeline, or &oat% air shipping is typically used only for perisha&les and premium express shipments. In comparison to most of the :estern world, the United /tates relies much more hea.ily on its roads &oth for commercial and personal transit. $ar ownership is nearly uni.ersal except in few of the largest cities where extensi.e mass transit systems ha.e &een &uilt. Intercity &us is, in most cases, the least expensi.e way to tra.el long distances in the U/

The United /tates has ad.anced air transportation infrastructure which utili@es approximately +,))) pa.ed runways. In terms of passengers, se.enteen of the world2s thirty &usiest airports in -))< were in the U./., including the world2s &usiest, Fartsfield6Iac#son 0tlanta International 0irport. In terms of cargo, in the same year, twel.e of the world2s thirty &usiest airports were in the U./., including the world2s &usiest, >emphis International 0irport. 3ri.ate aircraft are also used for medical emergencies, go.ernment agencies, large &usinesses, and indi.iduals. Aue to the geography of the United /tates and the generally large distances &etween ma4or cities, air transportation is the preferred method of tra.el for trips o.er 9)) miles, such as for &usiness tra.elers and long distance .acation tra.elers. 1or cities closer together, such as 'oston and !ew "or# $ity, !ew "or# and :ashington A.$. and 3hiladelphia and A.$., air tra.el does not carry the ma4ority of intercity traffic. :ater transport is largely used for freight. 1ishing and pleasure &oats are numerous, and passenger ser.ice connects many of the nation2s islands and remote coastal areas, crosses la#es, ri.ers, and har&ors, and pro.ides alternati.e access to 0las#a which &ypasses $anada. /e.eral ma4or seaports in the United /tates include !ew "or# to the east, Fouston and !ew 7rleans on the gulf coast, os 0ngeles to the west.

V. The 'ole o( the )arket The United /tates is said to ha.e a mixed economy &ecause pri.ately owned &usinesses and go.ernment &oth play important roles. Indeed, some of the most enduring de&ates of 0merican economic history focus on the relati.e roles of the pu&lic and pri.ate sectors. The 0merican free enterprise system emphasi@es pri.ate ownership. 3ri.ate &usinesses produce most goods and ser.ices, and almost two6thirds of the nation2s total economic output goes to indi.iduals for personal use (the remaining one6third is &ought &y go.ernment and &usiness). The consumer role is so great, in fact, that the nation is sometimes characteri@ed as ha.ing a *consumer economy.* There are limits to free enterprise, howe.er. 0mericans ha.e always &elie.ed that some ser.ices are &etter performed &y pu&lic rather than pri.ate enterprise. 1or instance, in the United /tates, go.ernment is primarily responsi&le for the administration of 4ustice, education (although there are many pri.ate schools and training centers), the road system, social statistical reporting, and national defense. In addition, go.ernment often is as#ed to inter.ene in the economy to correct situations in which the price system does not wor#. It regulates *natural monopolies,* for example, and it uses antitrust laws to control or &rea# up

other &usiness com&inations that &ecome so powerful that they can surmount mar#et forces. Go.ernment also addresses issues &eyond the reach of mar#et forces. It pro.ides welfare and unemployment &enefits to people who cannot support themsel.es, either &ecause they encounter pro&lems in their personal li.es or lose their 4o&s as a result of economic uphea.al% it pays much of the cost of medical care for the aged and those who li.e in po.erty% it regulates pri.ate industry to limit air and water pollution% it pro.ides low6cost loans to people who suffer losses as a result of natural disasters% and it has played the leading role in the exploration of space, which is too expensi.e for any pri.ate enterprise to handle. The U./. economy has changed in other ways as well. The population and the la&or force ha.e shifted dramatically away from farms to cities, from fields to factories, and, a&o.e all, to ser.ice industries. In today2s economy, the pro.iders of personal and pu&lic ser.ices far outnum&er producers of agricultural and manufactured goods. 0s the economy has grown more complex, statistics also re.eal o.er the last century a sharp long6term trend away from self6employment toward wor#ing for others.

,I. %overty and Ine-uality 0mericans are proud of their economic system, &elie.ing it pro.ides opportunities for all citi@ens to ha.e good li.es. Their faith is clouded, howe.er, &y the fact that po.erty persists in many parts of the country. Go.ernment anti6po.erty efforts ha.e made some progress &ut ha.e not eradicated the pro&lem. /imilarly, periods of strong economic growth, which &ring more 4o&s and higher wages, ha.e helped reduce po.erty &ut ha.e not eliminated it entirely. The federal go.ernment defines a minimum amount of income necessary for &asic maintenance of a family of four. This amount may fluctuate depending on the cost of li.ing and the location of the family. In (88E, a family of four with an annual income &elow J(=,+9) was classified as li.ing in po.erty. Aespite the generally prosperous 0merican economy as a whole, concerns a&out ine5uality continued. Increasing glo&al competition threatened wor#ers in many traditional manufacturing industries, and their wages stagnated. 0t the same time, the federal go.ernment edged away from tax policies that sought to fa.or lower6income families at the expense of wealthier ones, and it also cut spending on a num&er of domestic social programs intended to help the disad.antaged. >eanwhile, wealthier families reaped most of the gains from the &ooming stoc# mar#et.