Changing Economic World

AQA GCSE Geography

Strategies to reduce north-south divide: Enterprise Zone

24 new Enterprise Zones have been created. Their aim is to encourage the establishment of new businesses and jobs in areas where there were no pre-existing businesses. The government ensures provisions of super fast broadband and financial allowances for plant and machinery.

Strategies to reduce north-south divide: HS2 - positives

Planned to run from London to Birmingham and then on to Manchester and Leeds. Bring economic benefits to the Midlands and north England. Reduce journey times between cities so people spend less time travelling. Create thousands of jobs, as businesses are better connected to other cities and businesses.

Strategies to reduce north-south divide: HS2 - negatives

more likely to create jobs in London and people will commute instead. In November 2024, phase 2 of HS2 was cancelled. Cost of HS2 is £42 billion. Existing railways routes could be improved to increase the number go passengers.

Strategies to reduce north-south divide: Road Improvements - South West Super Highway

£2 billion road-widening project over next 15 years. Connect M3 to M5. Creates hundreds of construction jobs and reduce traffic. Helps open up the South-West of the UK - old people live there, investment.

Strategies to reduce north-south divide: UK Port Development - Liverpool 2: 2016

New container terminal, £300 million to double there ports capacity to 1.5 million containers a year. Creates jobs, boosts the economy and reduces the amount of freight traffic on roads. Benefits the North

Strategies to reduce north-south divide: Airport Development - Heathrow and Gatwick Expansions: 2022

Heathrow is one of the world’s major airports - 76,000 workers. Increase the yearly international flights from 750,000. New runway at Heathrow £18.6 billion. New runway at Gatwick £9.3 billion. Aviation accounts for 3.6% of the UK’s GDP.

Strategies to reduce north-south divide: Airport Development - Heathrow and Gatwick Expansions: 2022 - negatives

The 2015 recommended runway at Heathrow was scrapped. Locals are concerned about noise and environmental impacts - there has been a ban on night time flights.

Technology - Top Down

Charities and NGOs use intermediate technology in LICsand NEEs to help them reach their development goals,such as sustainable energy or more efficient ways of cooking. It is technology that the local community can take ownership of and learn to maintain. E.g WaterAid uses intermediate technology such as the Afridev hand pump to help provide clean water for people in Tanzania, increasing their life expectancy as less are dying from disease. Education has also improved as children are missing fewer days.

FairTrade - Top Down

The aim is to give producers a better price for the goods they produce, and a price guarantee. If the global price for a particular crop collapses, Fairtrade farmers will still receive their regular income. This protects their quality of life. E.g 18-year-old Sameena Nyaz, she stitches Fairtrade Footballs for a living and when Sameena needed a serious operation, she was able to afford it thanks to the FairTrade scheme

Debt Relief - Top Down

Debt relief can be achieved through 'conservation swaps'. A richer country may agree to write off part of a poorer country's debt if that poorer country agrees to protect its physical environment. The US agreed to let Indonesia keep US$30 million of borrowed money in exchange for increased protection of Sumatran forests, home to endangered rhinos and tigers.

Microfinance - Bottom up

Microloans are needed because subsistence farmers find it hard to escape poverty. They can only grow enough food for their own needs,rather than to sell the food. Microfinance loans provide farmers with the vital cash their families need to escape a cycle of poverty. A microloan is not a 'free hand-out'; it must be paid back. People in poverty feel as if  they can stand on their own two feet instead of being dependent on others. The most well-known provider of microloans is the Grameen Bank in Bangladesh. It has lent money to nine million people, 97% of whom are women.

Industrial Development - Top down

Countries trade with each other to support separate needs of the country, e.g fossil fuels, agricultural produce. Building manufacturing companies in LICs generate profit which governments can tax to pay for better healthcare or education.

Investment - Top down

TNCs prefer to manufacture goods inside the borders of other countries. The cash spent on other countries by TNCs is called foreign direct investment (FDI). Local people are employed to build factories and offices.Multiplier effects in LICs can develop as local businesses start to thrive. Skilled Chinese workers earn on average $600/month working for Apple, an American company.

International Aid - Top down

International aid is a gift of money, goods or services to a developing country that does not need to be repaid. E.g, In 2014, the DR Congo was provided with a $US73 million grant by international donors to help it build a hydroelectric dam, which provided many jobs

Tourism in Tunisia: popularity

Tunisia has seven UNESCO World Heritage Sites. Tunisia’s northern coastline is close to Europe, making in easily accessible and French is widely spoken which attracts French and French speaking tourists.The country’s northernly coasts have a Mediterranean climate - summer temperatures reach 40 degrees.

Tourism in Tunisia: Positives

Tunisia is now one of the wealthiest countries in Africa; the income of Tunisians has quadrupled in the 1970s. Literacy rates have improved from 66% to 79% since 1995. Schooling is now compulsory for girls and women are entering higher education in increased number. Tunisia’s government invests almost 4% of the GDP into healthcare.

Tourism in Tunisia: Negative impacts

Some of Tunisia’s Mediterranean beaches have been polluted with untreated sewage. Foreign companies like Thomas Cook send holidaymakers to Tunisia but keep a large percentage of the profits. In 2015, there were two terrorism attacks aimed specifically at tourists - as a result, European governments say Tunisia is no longer safe destination for their citizens - this means less foreign investment in the country’s economy.

Development of information technology

It is one of the main factors in the UK’s move to a post-industrial economy. Developments in IT have affected the UK in a number of ways: Internet access enables many people to work from home. Many new businesses are directly involved with IT, manufacturing hardware and designing software. Over 1.3 million people work in the IT sector. The UK is one of the world’s leading digital economies, attracting businesses and investment from abroad. 

Service industries and finance

The UK service sector has grown very rapidly since the 1970s. Today it contributes over 79% of the UK economic output, compared with 46% in 1948. Finance is an important part of the service sector. This includes banking, insurance and fund management. The UK is the world’s leading centre for financial services, with the City of London as the UK’s financial centre. accounts for about 10% of the UK’s GDP and employs over 2 million people

Research

UK research sector (part of the quaternary sector) employs over 60,000 highly-qualified people and contributes over £3 billion to the UK economy. 10 - 15% of the UK workforce now works in the quaternary sector. Research organisations include: pharmaceutical companies, environment agency, national health service, BBC, social market research companies.

Cambridge: Science Park

one of the top universities in the world, one of the main UK hubs for hi-tech industry

Cambridge: Science Park - Advantages

Graduates from university provide a highly educated workforce. There are good links between colleges and industry, helping to develop new business ideas

Cambridge: Science Park - Disadvantages

The city is overcrowded and congested, making it difficult to drive or park. House prices are high and still rising, making it expensive to live here.

UK’s place in the Wider World: Trade

Most of the UK’s trade is with the European Union because: As a single market, goods can be traded between member states without tariffs.  European countries are geographically close to the UK so transport costs are cheaper. European countries are among the world’s wealthiest economies so the volume of trade is greater. USA is an important long-standing trade partner, with UK being USA’s biggest export.

UK’s place in the Wider World: Electronic Communications

The UK is one of the world’s most connected countries. In 2016, 95% had access to the internet, compared to just 27% in 2000. Electronic communication is a vital part of our global economy and fast, reliable connections are essential. 99% of all internet traffic passes along submarine high-power cables. The UK is a focus for these submarine connections- many cables meet at or pass the UK. 

UK’s place in the Wider World: Culture

Television is one of the UK’s most successful media exports. E.g. Peppa Pig cartoons, created in the UK, are now screened in more than 170 countries worldwide, earning a total of US$1bn (£640m). As a result of the former British Empire, English is spoken in many countries around the world. Migrants have brought their own culture to the UK. E.g. Bollywood from India, Notting Hill Carnival

UK’s place in the Wider World: Transport

Heathrow- one of the busiest airports in the world. Many people transfer flights here. Channel tunnel and sea ferries connect to mainland Europe. Southampton is a major port for cruise liners taking tourists to destinations such as the Mediterranean and the Caribbean.

UK’s place in the Wider World: Commonwealth

UK is a member of the Commonwealth, a voluntary group of 53 countries, most of which were British colonies. It is home to 2.2 billion people, 60% are under the age of 30. The Commonwealth includes some of the world’s largest, smallest, richest and poorest countries. There are important trading and cultural links between the UK and the Commonwealth countries. There are also sporting connections, with the Commonwealth games – the so called ‘Friendly Games’ held every four years.

UK’s place in the Wider World: EU

In 1973 the UK became a member of the European Union (EU). The EU is still an important trading group, but its powers have extended to exert political influence over its members and elsewhere in the world.

UK’s place in the Wider World: EU - positives

The European Structural and Investment Funds has provided support for disadvantaged regions in the UK and sectors such as fisheries.The EU is the biggest single market in the world. Goods, services, capital and labour can move freely between member states and encourage trade.The Single Payments Scheme, introduced in 2015, is part of the EU's Common Agricultural Policy: In 2015, £18 million was made available to support dairy farmers in England and Wales.

UK’s place in the Wider World: EU - negative

There are EU laws and controls on crime, pollution and consumers nights. These rules can be restrictive for individuals and companies in the UK.