United Kingdom Profile
Population of UK (2012, CIA WORLD DATA) is 63,395,212 millon.
Area in sq. km according to CIA 2012 is 244,820.
GDP in US dollars according to CIA 2012 figures is 2.443 trillion.
GDP Per capita in US dollars (CIA) is 36,000
Growth rate of GDP in 2012 ( CIA ) was 0.2%
Background to UK Major Industries
The introduction of Prime Minister Margaret Thatcher brought major changes to the sectors operating in Great Britain. Prior to Thatcher the country focused mainly on manufacturing for instance car manufacturing, coal mining. However, once she came to power, she acknowledged that Britain was no longer profitable in such industries thus the country moved to focus on the service industry. The UK now focuses on “high end services.” According to government statistics, 25 years ago one in ten people worked in this industry, now it is 1 in 5, “employing 76 % of the UK workforce (BBC 2014). Examples of particular services vary ICT (information and communication technologies), consultancy (offering advice to businesses) and R&D (research and development, particularly in scientific fields). Retail, education and transportation are also major contributors to the service industry.
Major UK Trading Partners
Major trade partners to the UK are with the USA and Germany. The UK exports the most to USA (ONS 2013) and imports the most amount from Germany (ONS 2013) making them both significant trading partners. The report by ONS (official UK government body) shows that the main exports were in categories such as food, beverages & tobacco, basic materials and fuels.
Current Transportation of UK Trade
Obviously the ability to move goods safely and cost-efficiently to markets is important for international trade. In the case...
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...n. In 2012 the United Kingdom experienced weak consumer spending and subdued business investments (Yahoo Finance). Due to this, GDP fell 0.1% and the budget deficit remained high at 7.7% of GDP. The public debt continued to increase. The United Kingdom is still trying to recover from the economic recession of 2008 (CIA).
The Economy
The United Kingdom has the second largest economy in Europe, after Germany. Lately, the government has been reducing public ownership. Agriculture is a huge industry for the United Kingdom. It is intensive and very mechanical. They can produce about 60% of their food with less than 2% of the labor force. The United Kingdom has coal, natural gas, and oil resources but the oil and natural gas reserves are declining fast. To counteract, services such as banking, insurance, and businesses services count for the largest part of GDP (CIA).
Office of Industries, U.S. International Trade Commission.(2009).Export controls: an overview of their use, economic effects, and treatment in the global trading system. Retrieved from United States International Trade Commission http://www.usitc.gov/publications/332/working_papers/ID-23.pdf
The purpose of this investigation is to analyze to what extent did Margret Thatcher, the prime minister of the United Kingdom, impact Britain's economy from 1997-1990. This analysis will look at themes revolving around her impact on the trade unions, tax rates, her impact on unemployment in the UK and her role in the Lawson Boom in the 1980s. However, how other neighboring countries besides the US were affected when Margaret Thatcher came to power will not be investigated. In order to research these themes, news articles in BBC will be used to help find how Margret Thatcher changed Britain and its economy. In Addition, books such as the "No Such Thing as Society" and other online journals will be used. This investigation will include an evaluation of the origin, purpose, value and limitations of the sources used for research.
In answering the above question, I shall address myself first to examining manufacturing exports and the British position, followed by a word on the Imperial Preference which hindered British trade flows with the rest of the world. I shall go on to talk more generally about whether there has been a decline in the aggregate economy (essentially exploring the pessimistic implied in the title). Further, I shall argue that the British economy has performed well against some serious cultural and structural constraints and should not be subjected to unduly negative analysis.
Well according to the Institute of Economic Affairs, if the United Kingdom leave the European Union the economy would not be affected as the Government can negotiate a way to keep some freedoms in place like movement of goods. The Institute also claim that Britain is one of the least regulated economy in Europe as a result business would still locate their company to Britain as it is easy to operate in Britain compare to the rest of Europe and also because of the trade surplus it has with other countries in the Union, the economy would not suffer any damages (Pycock 10-16).The economy of the United Kingdom is in a better position if it leaves the EU, and According to the Telegraph " The United Kingdom will be the second most successful economy in the world"(Holehouse). According to the two sources Britain could actually benefit leaving the European Union as it would be free to trade with other major countries like China, India, and Brazil. As a result the United Kingdom could position itself as a premier destination to invest and start operation in and also a stepping stone to the European market. But the according to the the Centre of European reform, the economy will suffer if the UK leave the Union as there are about 4-6 million jobs that are directly related to the Union (Springford. et.al 28). The Government cannot afford to lose that many jobs because that mean the Government would lose millions in tax money as a lot companies would move to other countries. Because the United Kingdom is typically chosen to be the first country as their starting base if they want to do business with the EU. The two claims contradict heavily as the IEA base their report that the UK can use its economic size as leverage, While CER 's claim that the UK location and also it
The period during which there was an increased output of machine-made goods, also known as the Industrial Revolution, played a critical role in reshaping Britain’s economy. The Industrial Revolution, stimulated by advancements that were made during the Agricultural Revolution, began in Great Britain for many reasons. In addition to Britain’s broad availability of natural resources, the count...
Trading internationally, along with foreign trading policies has always been a controversial issue in America. Free trade is just as taboo if not more so. Today, the United States has made an attempt to maintain an open market of trading. Free trading greatly benefits a nation’s economy. The history of trade in The United States dates back over half a century ago. Through a substantial part of history, the United States had implemented rather extensive barriers and restrictions regarding importation, in order to better protect domestic suppliers from any serious foreign rivalry. Regardless, of Government restrictions and barriers set in place to avoid foreign competition it is healthy for our nation to have motivation and have the desire to
As Ian Fletcher pointed out in Free Trade Doesn’t Work: What Should Replace it And Why, nations need a well-chosen balance between openness and closure toward the larger world economy (Fletc...
First, Britain had some tremendous natural attributes. It was naturally endowed with many deposits of coal and iron ore, which were used heavily in the early stages of factory production. In addition, Britain was situated at a critical point for international trade. Its position between the United States and the rest of Europe allowed them to have a serious impact in all matters of trade. Likewise, a multitude of navigable waterways, easy access to the sea, and a mild climate all contributed to the onset of industrialism. Britain's topography was conducive to industrialism because its diversity allowed for the production of many agricultural products, preventing any sort of shortage or famine. Evans remarks, “Each single such advantage could be replicated in other European countries and some could be accentuated, but no other nation enjoyed such a rich combination of natural bounties” (111). Furthermore, the nation was free of many trade tariffs that hampered industry in other European nations while featuring a real opportunity for upward movement in society which provided a great incentive for acquiring wealth. Britain also experienced tremendous population growth which provided a potential workforce as well as an increase in the demand for goods.
... tax tariff. Based on the assumption that the company is exporting the finished goods to major developed countries such as the U.S. and the E.U. the transportation costs is high.
The Scotts Company started selling hardware and seeds in Marysville, Ohio in 1868. It specializes in seeds, fertilizers, peat, potting soils and other organic materials. By 1995, Scotts was the world’s #1 marketer of lawn and garden products. European operations were launched in 1993, with HQ in Lyon, France, and additional five European businesses acquired in UK, France, Germany, Austria and Benelux.
In order for international trade to work well, governments must allow the world market to determine how goods are sold, manufactured and traded for all to economically prosper. While all nations may have the capability to produce any goods or services needed by their population, it is not possible for all nations to have a comparative advantage for producing a good due to natural resources of the country or other available resources needed to produce a good or service. The example of trading among states comprising the United States is an example of how free trade works best without the interve...
This event has been drove by the concerns of currency traders who subscribed to the possibility that Brexit might implicate permanent damage on the Britain's economy. This assumption however has been counterfactual as Britain's economy is strong enough to prevent sudden collapse despite temporary jitters. Ever since then, the pound has been traded around 15 percent lower in comparison to the dollar and 12 percent lower when compared with euro. Although it results in domestic inflation that rises faster than workers’ wages, it proved to be be a beneficial economic boon for UK exporters due to the soaring cost of imports. This is a crucial key factor for the automotive industry in particular, where vehicles which may be completed in the UK are often comprised of imported component parts. As a matter of fact, automotive industry is considered the most vulnerable sector in the advent of Brexit because of its global exposure and heavy dependence on foreign workers. Though , both imports and exports in the UK has been boosted by weaker pound as currency strategists pointed that sterling shall remain volatile until greater clarity about the UK’s Brexit deal is
United Kingdom of Great Britain and Northern Ireland (London: 2005). pp. 51, 71-72. Accessed May 3, 2014. http://www.jhud.co.uk/huddleston/uk2005_tcm77-248610.pdf.
China’s economical strength comes from its international trades as the economy has grown to a rate of 10.3% in 2010. It has become the world’s largest exporter in the global economy. In the area of trade, three major strengths of China are 1) it is the single most important challenge for the European Union (EU) trade policy, 2) China is the second trade partner behind the U.S., and 3) it is the EU’s biggest source of imports by far with the dramatic increase in the EU-China trades over the recent years. The EU exports of goods to China were 113.1 billion Euros and in imports was 281.9 billion Euros in 2010. The service exports were 18 billion Euros and in imports were 13 billion Euros in 2009. China has also established trades with Australia. Recently, the two countries have been cooperating and assisting each other in industries such as agriculture, energy and minerals as they continue their free trade agreements (Jia Qinglin).
Logistics is the designing and managing of a system in order to control the flow of material throughout a corporation. This is a very important part of an international company because of geographical barriers. Logistics of an international company includes movement of raw materials, coordinating flows into and out of different countries, choices of transportation, cost of the transportation, packaging the product for shipment, storing the product, and managing the entire process. The concept of logistics is fairly new in the business world. The theoretical development was not used until 1966. Since then, many business practices have evolved and logistics currently costs between 10 and 25 percent of the total cost of an international purchase.