Economy in the UKContents:

I. Currency II. Trade in the UKIII. Industries in BritainIV. Farming and agricultureV. Employment and working in BritainVI. 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, London, is one of the two largest financial centers in the world, along with New York City. 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 by the symbol £. The Bank of England is the central bank, responsible for issuing currency.

The pound ( ) is made up of 100 pence (p) exactly like the dollar is split into 100 cents.The singular of pence is "penny". The symbol for the penny is "p"; hence an amount such as 50p is often pronounced "fifty pee" rather than "fifty pence".There are both coins and banknotes. Current coins are: 1 penny, 2 pence, 5 pence, 10 pence, 20 pence, 50 pence, 1 pound, and 2 pounds.Current bank notes are: the 5 pound note, the 10 pound note, the 20 pound note and the 50 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.

Leading destinations for UK products and services include:

the USA Germany France

Exported products: manufactured goods, fuels, chemicals; food, beverages, tobacco.

The chemical industry is Britain's largest export earner. British Petroleum (BP) is Britain's biggest industrial company. UK pharmaceutical companies make some of the world's best selling medicines. It is also a major supplier of machinery, vehicles, aerospace products, electrical and electronic equipment. Britain is responsible for 10 per cent of the world's export of services, including banking, insurance, stockbroking, consultancy and computer programming.

Imported products: manufactured goods, machinery, fuels, and foodstuffs. Food, beverages and tobacco account for half of non-manufactured imports, whilst machinery and road vehicles account for two-thirds of finished imported manufactures. Other major imports include chemicals, fuels, clothing and footwear.

III. Industries in BritainThe main British industries today are banking and finance, steel, transport equipment, oil and gas, and tourism.

London is one of the world's great financial centers, which is one of the factors that is commonly considered to make it a world city. Central London contains some of the most expensive commercial property in the world because of this.

From around the early 1990s London has been able to boast of having more U.S. banks than New York, as well as being host to branches of more than five hundred overseas banks. It is the principal financial center of the world, ranked alongside New York and Tokyo as one of three where any serious financial player must be represented.

The City of London has around 300,000 employees, largely concentrated in the financial and professional sectors.

Tourism is very important to the British economy. With over 27 million tourists arriving in 2004, the United Kingdom is ranked as the sixth major tourist destination in the world. London, by a considerable margin, is the most visited city in the world with 15.6 million visitors in 2006.

Other industries

Machine tools, electric power equipment, automation equipment, railroad equipment, shipbuilding, aircraft, motor vehicles and parts, electronics and communications equipment, metals, chemicals, coal, petroleum, paper and paper products, food processing, textiles, clothing, and other consumer goods.

Natural resources

Britain’s natural resources are:

Coal, petroleum, natural gas - found in the British sector of the North Sea, zinc, tin, limestone, iron ore, salt, slate, clay, chalk, gypsum, lead, silica, arable land.

During the 19th century Britain used to have many coal and iron mines and had the natural resources to make textiles, steel and ships. Today, coal and textiles can be produced more cheaply in other countries and so many British factories and mines have closed.

Oil and gas were discovered under the North Sea during the 1960s and new supplies are still being found today. Gas has been particularly important in replacing coal as a fuel for generating electricity.

The business of generating electricity from the wind is growing fast as the world looks for cleaner ways to produce energy. Coal, oil and gas fired power stations could eventually be replaced by wind farms and other forms or renewable energy. In 1997, there were 550 wind turbines and over 30 wind farms in the UK. The government has made a promise that 10% of the energy of the UK will come from renewable sources by 2010.

England has relatively few mineral resources. Zinc, tin, iron ore, and copper are all produced in small quantities. At one time Cornwall boasted 2,000 tin mines and it was a world leader in tin production.

The main commercial minerals are those used in the construction and building industries such as sand and gravel, limestone and gypsum. They are normally mined from the surface in quarries using heavy machinery. Smaller quarries are also found across England and provide stone for the local building industry. This means that many parts of England have a distinctive appearance according to the local stone available.

IV. Farming and agriculture

Farming in Britain has changed a great deal in the last 30 years. Farming used to employ a great many people in Britain but nowadays, with machinery, a few people can run a huge farm of thousands of hectares.

Agriculture provides around 60 per cent of Britain's food needs even though it employs just 1.4 per cent of the country's labor force. Britain's agriculture is under pressure to change at the moment. Farmers are under pressure to adopt more environmentally friendly methods such as organic farming. Organic farming does not use artificial chemicals that can damage the environment and human health. Its popularity has grown rapidly in recent years.

Most of the land is suitable for agriculture, although the largest area is reserved for pasture and grazing land.

Different types of farming occur in different regions of Britain. This is due to the influence of relief, climate (especially precipitation and temperature), soil type and to an extent closeness to the market. Upland areas generally lend themselves to sheep farming. Flat areas lend themselves to crop production and wet/warm areas to milk and beef production.

Some parts of Britain have excellent soil for crops, while others are used for cattle, sheep, pigs and poultry.In the north-west of England, Wales and Scotland, farmers keep cattle and sheep. Sheep can survive the cold winters on the hills and moors.In the south-west of England, the rich grass is ideal for feeding dairy cows.In the south-east of England and the lowlands of Scotland, grain, potatoes and sugar beet are grown.In the east of England (East Anglia), wheat, barley and vegetables grow in enormous fields.

Principal crops:wheat (the most widely grown arable crop in the UK) barley, oats, potatoes, sugar beet, vegetables, oil seed rape, fruits.

Livestock products:poultry, sheep, cattle, milk, meat, eggs, wool.

V. Employment and working in Britain

About 75% of British jobs are in service industries - hotels, restaurants, travel, shopping, and computer and finances. It is the fastest growing business and employs over twenty million people.

The usual working day starts at 9am and finishes by 5pm. Most people work a five-day week. The working week is, on average, the longest of any country in Europe. In 1998 a new law was passed saying that workers do not have to work more than 48 hours a week if they don't want to. However, about 22% of British workers do work more than a 48-hour a week. British employers must give their workers 24 days paid holiday a year.

Children are not legally allowed to work until they are 13. Under-15s can work up to five hours on Saturdays (and weekdays in the summer holidays), to a maximum of 25 hours a week

during school holidays. They can only work two hours maximum on schooldays and Sundays. Over-15s can work eight hours maximum on Saturdays and school holiday weekdays, and up to 35 hours a week during the holidays

VI. Transport Roads and motorways are Britain's primary domestic transport routes. British people usually travel by car, van, taxi or bus. Motorcycling is popular in Britain, both as a means of transport and as a pastime with over one million motorcyclists. Most goods are transported by roads in lorries.

Buses and Coaches

Another type of transport is the bus. There are single decker and double decker buses

.

Sightseeing buses

There are many sightseeing, open top, buses in London and other cities.

 

Trams

Trains

The rail network in Britain is one of the most extensive in Europe with over 11,000 miles (17,500km) of lines, some 2,500 stations and around 1,500 trains a day.

Interesting Facts

Britain pioneered railways.The Stockton and Darlington railway (1825) was the first public passenger railway in the world.

The Tube

"The Tube" is the name of London's underground system

The London underground railway system (or 'tube', as it is known locally) celebrated its centenary in 1990 and is internationally famous, ranking alongside the Paris metro and the New York subway. London's tube network covers the largest area of any underground rail system. The tube runs to all areas of central and greater London, connecting all mainline stations.

Interesting Fact

London was the first city in the world to have an underground railway, called the 'tube'. The first line was built in 1890.

Euro TrainsThe trains travel under the sea in a very long tunnel called the Channel Tunnel. The tunnel was completed in 1995 and is 50 meters below the seabed. Eurostar is the high-speed train service linking London, Ashford, Paris, Brussels, Lille, Avignon, Calais, Disneyland Resort Paris and the French Alps. AirportsLondon is a major port. It has three airports, which are all located outside the city area: Heathrow, Gatwick and Stansted.

ShipsShipping still remains the main form of cargo transport into and out of Britain, despite the opening of the Channel Tunnel to France in 1994. The busiest seaport is Dover.

Economy of the United States

Contents:

1. History2. General Situation

3. Innovation

4. Public Transport

5. The Role of the Market

6. Poverty and Inequality

I. History

The United States has the biggest national economy in the world. It is the world's foremost economic power. The main reason the economy of the United States became immensely prosperous and innovative was because it was predominantly free. The Founding Fathers established a political system which recognized the right of the individual to think and produce without government interference. The result was the country's rise as a world power known around the world today. In addition to this essential fact, there are three important ingredients that characterize the United States economy.

The first ingredient of a nation's economic system is its natural resources. The United States is rich in mineral resources and fertile farm soil, and it has a moderate climate. It also has extensive coastlines on both the Atlantic and Pacific Oceans, as well as on the Gulf of Mexico. Rivers flow from far within the continent, and the Great Lakes—five large, inland lakes along the U.S. border with Canada—provide additional shipping access. These extensive waterways have helped shape the country's economic growth over the years.

The second ingredient is labor. The number of available workers and their productivity help determine the health of an economy. Throughout its history, the United States has experienced steady growth in the labor force.

Third, there is manufacturing and investment. In the United States, the corporation has emerged as an association of owners, known as stockholders, who form a business enterprise governed by a complex set of rules and customs.

II. General situation (industry, agriculture)

Industry. The economic system of the United States can be described as a capitalist mixed economy. Economic activity varies greatly across the country. For example, New York City is the center of the American financial, publishing, broadcasting, and advertising industries, while Los Angeles is the most important center for film and television production. The San Francisco Bay Area is a major center for technology. The Midwest is known for its reliance on manufacturing and heavy industry, with Detroit serving as the historic center of the American automotive industry, and Chicago serving as the business and financial capital of the region. The Southeast is a major area for agriculture, tourism, and the lumber industry, and, because of wages and costs below the national average, it continues to attract manufacturing.

The economy is fueled by an abundance in natural resources such as coal, petroleum, and precious metals. However, the country depends on foreign countries for much of its energy. The U.S. has a large tourist industry, ranking third in the world, and is also a major exporter in goods such as airplanes, steel, weapons, and electronics. Canada accounts for 19% (more than any other nation) of the United States' foreign trade, followed by China, Mexico, and Japan.

The per capita income of the United States is among the highest in the world.

Agriculture. 47% of the land area of the US is farmland, of which 152 million hectares are harvested cropland and 560 hectares are permanent pastureland, yet only 6.2 million people live on the nation’s 2,300,000 farms. The Midwest is the most important agricultural region in the United States, corn and wheat are the main crops, and livestock and dairy farming are also carried out on a large scale. Although the South is still important for traditional crops, such as tobacco, corn and cotton, there is now far greater variety, while Texas is the nation’s leading producer of cattle, sheep, cotton and rice. The West is important for cattle and wheat farming in the Great Plains area, and for fruit in the fertile valleys of the states that border the Pacific. Yet agriculture accounts for less than 3% of GNP.

USA is a great importer and exporter of goods and services:

Exports - commodities: capital goods, automobiles, industrial supplies and raw materials, consumer goods, agricultural products

Imports - commodities: crude oil and refined petroleum products, machinery, automobiles, consumer goods, industrial raw materials, food and beverages.

III. Innovation

The United States is an influential country in scientific and technological research. Beginning early the Cold War, the U.S. achieved successes in space science and technology, leading to a space race which led to rapid advances in rocketry, weaponry, material science, computers, and many other areas.

In the sciences, Americans have a large share of Nobel Prizes, especially in the fields of physiology and medicine. The main governmental organization for aviation and space research is the National Aeronautics and Space Administration. Major corporations, such as Boeing and Lockheed Martin, also play an important role.

The Boeing 787 rollout on July 8, 2007

IV. Public Transport

Transportation in the United States is facilitated by road, air, rail, and water networks. The vast majority of passenger travel occurs by automobile for shorter distances, and airplane for longer distances. In descending order, most cargoes travel by railroad, truck, pipeline, or boat; air shipping is typically used only for perishables and premium express shipments.

In comparison to most of the Western world, the United States relies much more heavily on its roads both for commercial and personal transit. Car ownership is nearly universal except in

few of the largest cities where extensive mass transit systems have been built. Intercity bus is, in most cases, the least expensive way to travel long distances in the US

The United States has advanced air transportation infrastructure which utilizes approximately 5,000 paved runways. In terms of passengers, seventeen of the world's thirty busiest airports in 2004 were in the U.S., including the world's busiest, Hartsfield-Jackson Atlanta International Airport. In terms of cargo, in the same year, twelve of the world's thirty busiest airports were in the U.S., including the world's busiest, Memphis International Airport. Private aircraft are also used for medical emergencies, government agencies, large businesses, and individuals.

Due to the geography of the United States and the generally large distances between major cities, air transportation is the preferred method of travel for trips over 300 miles, such as for business travelers and long distance vacation travelers. For cities closer together, such as Boston and New York City, New York and Washington D.C. and Philadelphia and D.C., air travel does not carry the majority of intercity traffic.

Water transport is largely used for freight. Fishing and pleasure boats are numerous, and passenger service connects many of the nation's islands and remote coastal areas, crosses lakes, rivers, and harbors, and provides alternative access to Alaska which bypasses Canada. Several major seaports in the United States include New York to the east, Houston and New Orleans on the gulf coast, Los Angeles to the west.

V. The Role of the Market

The United States is said to have a mixed economy because privately owned businesses and government both play important roles. Indeed, some of the most enduring debates of American economic history focus on the relative roles of the public and private sectors.

The American free enterprise system emphasizes private ownership. Private businesses produce most goods and services, and almost two-thirds of the nation's total economic output goes to individuals for personal use (the remaining one-third is bought by government and business). The consumer role is so great, in fact, that the nation is sometimes characterized as having a "consumer economy."

There are limits to free enterprise, however. Americans have always believed that some services are better performed by public rather than private enterprise. For instance, in the United States, government is primarily responsible for the administration of justice, education (although there are many private schools and training centers), the road system,

social statistical reporting, and national defense. In addition, government often is asked to intervene in the economy to correct situations in which the price system does not work. It regulates "natural monopolies," for example, and it uses antitrust laws to control or break up other business combinations that become so powerful that they can surmount market forces. Government also addresses issues beyond the reach of market forces. It provides welfare and unemployment benefits to people who cannot support themselves, either because they encounter problems in their personal lives or lose their jobs as a result of economic upheaval; it pays much of the cost of medical care for the aged and those who live in poverty; it regulates private industry to limit air and water pollution; it provides low-cost 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 expensive for any private enterprise to handle.

The U.S. economy has changed in other ways as well. The population and the labor force have shifted dramatically away from farms to cities, from fields to factories, and, above all, to service industries. In today's economy, the providers of personal and public services far outnumber producers of agricultural and manufactured goods. As the economy has grown more complex, statistics also reveal over the last century a sharp long-term trend away from self-employment toward working for others.

VI. Poverty and Inequality

Americans are proud of their economic system, believing it provides opportunities for all citizens to have good lives. Their faith is clouded, however, by the fact that poverty persists in many parts of the country. Government anti-poverty efforts have made some progress but have not eradicated the problem. Similarly, periods of strong economic growth, which bring more jobs and higher wages, have helped reduce poverty but have not eliminated it entirely.

The federal government defines a minimum amount of income necessary for basic maintenance of a family of four. This amount may fluctuate depending on the cost of living and the location of the family. In 1998, a family of four with an annual income below $16,530 was classified as living in poverty.Despite the generally prosperous American economy as a whole, concerns about inequality continued. Increasing global competition threatened workers in many traditional manufacturing industries, and their wages stagnated. At the same time, the federal government edged away from tax policies that sought to favor lower-income families at the expense of wealthier ones, and it also cut spending on a number of domestic social programs intended to help the disadvantaged. Meanwhile, wealthier families reaped most of the gains from the booming stock market.