London Economic Development Flashcards

Trade in the UK

Trade is the movement of goods and services by road, air , sea and rail

The internet is becoming more important for trade for finance, communications and the creative industries

The main trading partner of the UK is the EU

The USA is an important historical trading partner with the potential to increase since Brexit

There has been a recent increase in trade with China

The UK trades with many countries through sea, air , road and rail (Channel Tunnel, Heathrow). Channel Tunnel: Connects the UK directly to the European road and rail networks

• Services Export: The UK is the world’s second-largest exporter of services (financial, legal, IT, and creative industries).

• Goods Import/Export: The UK mainly imports manufactured goods (machinery, electronics, cars) from China and the EU, while exporting high-value goods (pharmaceuticals, aerospace components, luxury vehicles).

Culture

Culture is the values and beliefs of a society or group of people.

• TV is one of the UK’s major creative industries worth over £1.25 billion a year. Programmes such as Doctor Who, Sherlock and Downton Abbey are successful abroad.

• Fashion, music and film are important exports, especially to the English speaking world

• Migrants to the UK have introduced their own cultural characteristics to UK culture (food, fashion, film, music, festivals) global cultural events in the UK like the Notting Hill Carnival, Chicken Tikka Masala (British-adapted Indian cuisine, often cited as a national dish - a symbol of how Britain absorbs and adapts external influences)

• Sport: the Premier League: broadcast to almost every country in the world, with billions of viewers, one of the UK’s largest cultural exports

transport

• There are links to mainland Europe through the Channel Tunnel, with fast rail services via the Eurostar

• Ferries and cruise ships transport people to Europe and the rest of the world from ports such as Southampton. Southampton is a major port for cruises seeing thousands of tourists come through. Southampton's container terminal, which handle heavy cargo, manufactured goods, and raw materials from around the world

• Major ports and airports such as Heathrow and Gatwick have created strong links with other countries

• London Heathrow is one of the busiest airports in the world and an important hub where people make transfers

Heathrow handles high-value, low-weight freight (pharmaceuticals, electronics, gems).

why these links matter globally: they facilitate international business travel, tourism, global supply chains, and migration

electronic communications

99% of all internet traffic passes through a multi-billion dollar network of underwater cables

The UK is a focus for many of these cables connecting areas all around the world. Reinforces London’s status as a major global financial center by enabling real-time international stock trading and seamless operations for global businesses

The ‘Arctic Fibre Project’ involves 15,000km of cables linking London with Tokyo. will significantly reduce latency between European and Asian markets, giving UK financial, media, and tech sectors a competitive edge and expanding direct trade with Asian economies.

The UK is an important hub for global for the global network of submarine cables connecting Europe and USA

Attracts major transnational corporations (TNCs) to place their European headquarters in the UK, strengthens economic partnerships between the UK and places in North America and Continental Europe

The European Union

The EU: a strong political and trading organisation. Brussels can exert political influence over its member countries. The EU has worldwide political and economic influence and a shared currency (euros)

In 1973 the Uk became a member of the EU and left in 2020

This allowed free trade between all member states

Many voted to leave the EU as they felt that Brussels had too much say in UK laws

benefits to the UK of leaving the EU

The UK will be free to make new trade deals with countries making it a global player

• Instead of paying money to the EU, the UK can save this and create more links with other countries, plus could allocate this money to national services like the NHS. In practice, it did not create financial savings to fund this, and the economic benefits of these new distant links are vastly outweighed by the loss of seamless trade with the EU

challenges to the UK of leaving the EU

• In theory, the UK would have a more powerful role in the Commonwealth. however: Historical sensitivities: Many member states view the Commonwealth through the lens of decolonisation. Post-Brexit political rhetoric in London about "reviving trade with old colonies" was heavily criticised both at home and abroad as an outdated, neo-colonial concept

• The UK will lose out on economic support from the EU that was mostly spent on farming and poorer northern regions

• The UK loses access to free trade with EU countries as well as free movement of people and capital

• Many TNCs will relocate away from the UK to get access to EU markets 

• The UK may have less international influence

• There may be less migration of skilled workers into the UK

• The UK will no longer have a decision making voice in the EU

The Commonwealth

This is a group of countries most of which were British colonies. It is home to 2.2 billion people with 60% of them being under 30.

Countries in the Commonwealth can get advice on human rights, social and economic development and youth empowerment. The heads of state meet every two years to discuss major issues

It has helped create trading, migration and cultural links e.g. Commonwealth Games, migration etc.