UNIT 5. ECONOMY OF GREAT BRITAIN
Common Characteristics of the British Economy
Britain’s economy is based on private enterprise, which accounts for 75% of output and nearly 70% of employment.
British industries can be divided into 3 main groups:
a) Primary industries providing raw materials and food from the land and the sea (energy resources, agriculture) - 13%.
b) Manufacturing industries making finished goods from raw materials (electronics, aerospace, chemical) – 22%.
c) Service industries (baking, business, computing tourism) – 65%.
Among the main trends of Britain’s economy have been:
a) the decline in the heavy industry;
b) the growth of the offshore oil and gas industry;
c) the rapid development of the electronic industry;
d) the continual rise in the service industries.
● Primary industries
Britain has the largest energy resources in Europe and is a major world producer of oil, natural gas and coal (from the North Sea).
About 80% of offshore production of oil and gas is brought ashore by submarine pipeline. The most perspective technologies belong to wind, tidal and solar power.
British agriculture is known for its high efficiency and productivity. The industry produces nearly 2/3 of Britain’s food (3% of population are busy in it).
More than half of the farms devoted to cattle and sheep are on the hills of Scotland, Wales and Northern Ireland. Farms devoted to arable farming are in eastern, central and southern England.
The fishing industry provides about 65% of British fish supplies in Europe.
● Manufacturing industries
There are a number of large companies in the electronic, aerospace and chemical industries.
The electronic industry produces computer hardware systems, associated equipment and software.
The aerospace industry (the 3-rd largest in the world) exports over 70% of its production: civil 2 military aircraft, satellites, space systems, guided weapons and components.
The chemical industry (the 3-rd largest in the Western Europe) exports nearly 50% of its production: pharmaceuticals, pesticides, cosmetics.
● Service industries
The service industries account for 66% of Britain’s Gross Domestic Product (GDP) and 71% of employment.
The banking services are responsible for about 20% of international bank lending and insurance.
The business services contribute about 1/6 of the national income.
The computing services include such areas of software development as data and word processing, telecommunication, defense and consumer electronics.
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The tourism services employ nearly 1.5 million people. More than 20 mln people visit Britain and about 35 mln people (British economy for residents) trip abroad.
● Trade
Trade has been a key part of British economy for centuries. Britain has only 1% of the world population but is the 5th largest trading nation.
Britain’s export earnings from services (such as banking, computer services and tourism) exceed those from exports of goods.
Answer the questions:
1. What main industries in Britain’s economy do you know?
2. What are the main trends of Britain’s economy?
3. What is the character of the primary industry?
4.What do the manufacturing industries produce and export?
5.What are the main branches of Britain’s service industries?
6.Where does Britain get oil and gas from?
7.What percentage of Britain’s working population is engaged in agriculture?
Main Industrious Centers of UK
For purpose of simplification Britain can be divided into 8 great industrial regions:
1. The Midland Area (around Birmingham and Wolverhampton) produces vehicles, metal goods, electrical and engineering goods.
2. Yorkshire – the woolen industry/the coalfields.
Leeds is a great centre for clothing and engineering. Sheffield is famous for its steel and cuttery. Hull is one of the most important fishing ports.
3. Lancashire (Manchester as its centre). Electrical goods, dye-stuffs, heavy engineering products are made here. Liverpool is one of the world’s great ports, where ship repairing is carried out.
4. Wales is noted for mineral wealth, producing iron, copper, lead, zinc, slate and limestone. South Wales is a coal-mining area. Today there are lots of factories producing plastics chemicals textiles.
5. Durham and Northumberland.
Coal is mined in the eastern parts. There are important iron and steel industries (on Clydeside), shipbuilding and ship repairing yards.
6. Scotland has extensive iron and steel industry. The industrial belt of central Scotland extends from Glasgow to Edinburgh.
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7. Northern Ireland is famed for its linen. It is the centre of production of cigarettes and tobacco. Chemicals and engineering products are made here.
8. The London area is characterized by mixed light industry, by the concentration of business control, by its port.
Answer the questions:
1. What industrial regions of Britain do you know?
2. What are the main goods of these regions?
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