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Each chapter is written by an expert contributor. For this new edition all of the chapters have been carefully updated to include new data and analysis, ensuring that book remains fully up to date, and continues to provide an excellent introduction to the UK economy in its domestic, EU and global context. |
UK Industry and BusinessModern Industrialization Started First in the UKModern industrialization started in UK with the mechanization of agriculture and the influx of surplus agricultural labourers into the urban factories that had begun to come up. In the 19th century, UK was the dominant maritime power, and ruled over a large part of the world. Its economy had benefited as a result. UK is now a highly industrialized country. It also has a globalized economy, with London as one of the four major financial centres of the world and the UK a major trading centre. UK has an estimated Gross Domestic Product - GDP - of $2.8 trillion in 2007. GDP represents the total of goods and services produced in a country, and includes net exports, i.e., exports minus imports. As is the case with all developed economies, the services sector contributed most to the GDP, accounting for 76%, while industry contributed 23% and agriculture 1%. We will look at these economic sectors and the country's resources, in the following sections, starting with agriculture. AgricultureIn UK, agriculture is intensive and highly mechanized. The resultant high productivity meets more than half the country's needs despite a comparatively higher population and smaller land area. This sector employs just about 1.5% of the total labour force. Livestock, consisting of cattle, poultry and sheep is the dominant product of this sector. Wheat, barley, oats, oilseeds, potatoes and sugar beet are the main crops. Fishing is also a significant contributor to this sector. IndustryUK had a head start in the area of industrialisation, which started in the eighteenth century with the development of the steam engine. UK has large reserves of coal, natural gas and oil with its energy sector contributing 10% of the GDP in 2007. Major industrial products include machine tools, equipment needed by the power sector, railways and for automation, building of ships, aircraft and motor vehicles, electronics and communication, paper and paper products, food processing, textiles, clothing, metals and chemicals. With the fast growth of the services sector, the industrial sector is declining in importance. ServicesThe growing services sector includes financial services, such as banking and insurance, and business services, much of which is exported. Wholesale and retail is the dominant services sector, with Hotels & Restaurants, Transport & Storage, Real Estate & Lettings and Public Services including Defence being other major services. The government has also been improving the delivery of education and health services. |
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