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Causes of change - Urban change

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mindmap style document with causes of change stemming from 3 main points

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  • August 21, 2024
  • 3
  • 2024/2025
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elsiek07
Causes of Change in the
UK (Changing UK
Economy)



Globalisation Government Policies Deindustrialisation



Definition: (The way in which the The government manages the UK The UK has experienced the
world has become more economy through the treasury. deindustrialisation ( a decrease in
interconnected. It refers to how the amount of manufacturing
people communicate as well as taking place in the country + a
world trade, international growth of the tertiary (services) +
investment and the sharing of quaternary (knowledge based)
ideas.) Each year a budget is produced sectors)
which sets out things like minimum
wages, levels of tax, and spending
on public services.

Globalisation has led to an increase Traditional industries e.g ship
in world trade, world investment building and textiles has declined,
and communication between this has happened for two main
different countries. During the 1980’s the UK was performing reasons.
better than other European countries, and - A global shift in manufacturing to
several things helped this growth: - Many NEEs where wages are lower +
state owned businesses in the UK were working hours are long (trade
privatised (eg. British Telecom, British Gas), unions are sometimes banned, so
In the past the UK economy was they have been owned by the government people can’t fight against working
focused on activities that took but were sold to individuals/other too many hours).
place within the country and within companies → has made the government a - The increase in machinery used to
commonwealth countries. lot of money. carry out work. This is called
(countries that were formally UK - Markets were deregulated (the removal of mechanisation (taking jobs away
colonies - that the UK used to own from people as machines do the
government control→ more freedom within
them) role instead).
business → companies find better ways to
increase profit)
-Significant amounts of factories and coal
pits were closed, this was due to the
government saying that they couldn’t
The growth of globalisation means compete with foreign countries while wages
that the UK economy is now more were lower. This is when UK
dependent on other countries e.g. jobs/manufacturing went abroad (started
the manufacturing industry being done overseas instead)
(factories which make goods e.g. The service sector grew (payment for a
cards, tvs etc). In the 1900s 55% of service, e.g lawyer), wages in the service
the UK population worked in sector are generally high
secondary jobs (manufacturing
industry) but in 2011 a census
showed this has dropped to 9%

The UK economy continued to
grow in the 1990s (the government
kept taxes low so people had more
Globalisation has allowed people money and had more disposable
to connect with other countries income)
(e.g. it is now possible to locate
factories abroad and get products
shipped to the UK)

In 2008 there was a global financial
crisis and the UK entered a period
of recession (a time of temporary
economic decline).




UK banks (e.g lloyds) were helped
using government money, which
was very expensive for the country
and the level of national debt grew.




Since 2010, a period of austerity (a
period of difficult economic
conditions as the government
reduces spending) has been in
place, and the government has
made cuts to save money.
- There are attempts to improve
productivity so the UK can earn
more money.
- There are 24 enterprise zones
across the UK (e.g. Birmingham
and Manchester). These locations
have incentives for businesses to
locate themselves there (e.g.
reduce tax + relaxed planning
rules)

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