Lesson 5 - Changing Economy
Deindustrialisation
Change in industrial structure in the UK
define globalisation
the process by which the world is becoming increasingly interconnected as a result of massively
increased trade and cultural exchange.
What are the causes of economic change
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.
Since de-industrialisation, there are fewer jobs in manufacturing, in producing goods and in the north
of England.
Globalisation
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 : AIR FRANCE KLM
Government policies affect the economy.
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.
Benefits and costs of changing UK economy
Benefits
UK economy grows by 1 or 2% due to trade with the rest of the world
Things we buy are cheaper
Foreign companies invest in the UK
The UK specialises in high-value manufacturing and services, like information technology. These jobs pay
workers a high wage
Migrants come to the UK to fill jobs where there is a shortage
Lesson 5 - Changing Economy Deindustrialisation 1
Deindustrialisation
Change in industrial structure in the UK
define globalisation
the process by which the world is becoming increasingly interconnected as a result of massively
increased trade and cultural exchange.
What are the causes of economic change
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.
Since de-industrialisation, there are fewer jobs in manufacturing, in producing goods and in the north
of England.
Globalisation
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 : AIR FRANCE KLM
Government policies affect the economy.
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.
Benefits and costs of changing UK economy
Benefits
UK economy grows by 1 or 2% due to trade with the rest of the world
Things we buy are cheaper
Foreign companies invest in the UK
The UK specialises in high-value manufacturing and services, like information technology. These jobs pay
workers a high wage
Migrants come to the UK to fill jobs where there is a shortage
Lesson 5 - Changing Economy Deindustrialisation 1
