Present Day g.B.: Economy (example of 2-3 industries).

Place in the world market

The former ‘world workshop’ GB is now in the 5th position as to GDP and 23d as to GDP per head.GB is first among highly developed industrial countries of Europe as to GDP annual growth. The export of capital abroad remains a major factor of its development. In terms of foreign investment it is second only to USA. The bulk of investment is directed towards manufacturing industries of West Europe (56%). Main articles of export include machinery, transport, chemicals and ‘invisible’ commodities: GB exports high tech know-how, licences, engineering and services in consulting: marketing research, audit, insurance. GB mostly attracts investment from USA (2/5 of total foreign investment). 1/3 of Japanese direct investment is drawn by GB. For British economy at large import prevails over export – there is a certain trade deficit. However, it is off-set by a surplus of the so-called ‘invisible trade due to the earnings of the country from the international travel, shipping, tourism and financial services (which make up to 70 % of GDP). As to total personal income - 64% is income from employment.

Main Industries

Extracting industries are recessive

Coal mining used to play crucial role in the Industrial Revolution of the XVIII-XIX centuries.it decreased now.

Oil is a comparatively new sphere – the first derricks started functioning in 1920. Up to 1975 GB had to import oil. Due to statistics if the Shell company natural oil deposits of GB are estimated at 30 billion barrels. Its output however is becoming more and more costly due to location removed from the coast – up to 189 km. Britain makes use of floating derricks with one borehole. As to the general output, it is in the 9th position in the world. As to natural gas it holds the 5th position after Russia, USA, Canada and the Netherlands.

Output of mineral resources (sand, chalk, gravel, sandstone, caolin, slate) is not sizable. About 30000 people are employed in this sphere.

Manufacturing accounts for about 25% GDP.

Electronics is a fast growing industry. Electricity first used in GB in 1881 is mostly generated by conventional steam power stations (coal), gas turbines and oil stations. Nuclear sources take the 4th position. Major hydro-electric power stations are situated in Scotland. A stress ia laid upon renewable sources, and use of windpower, water and solar batteries. So far they account for about 3 % of energy production.

Motor vehicle is the largest single manufacturing industry in Britain. Output of cars is dominated by 4 large monopoly groups: Rover, Ford, Pegeot and Suzuki. Britain is a major producer of agricultural tractors and harvesters.

Britain has a long established tradition in ship-building. The major ship yards are situated in Clydeside, North-East (the Tyne, Tees and Wear), Merseyside, Barrow and Belfast.

Chemical industry is given top priority. It includes manufacturing of all kinds of soap, perfumery (e.g. Procter and Gamble), dyestaffs, lubricating oils and greases; fertilizers and mineral oil refining. GB has achieved a nubber of breaks-through in the production of medicines (Sonntag – the world famous treatment for ulcer, the first ever processed drug for cancer and different medicines for allergy). Products of biotechnology are also referred to this group.

One cannot but mention ceramics and glassware production. Wedgewood china (the production is situated in Stock-upon-Trent) is famous all over the world. British glass for automobiles has the highest reputation.

Consumer goods include textiles, leather and footwear, food, drink and tobacco. GB has always had a high reputation for cotton and wool manufacturing (the centers are Lancashire and Yorkshire respectively) Names of high quality woollen cloths like cheviot, tweed, jersey are partially assimilated words in Russian. Nothern Ireland is famous for its flax and luxury table and bed linen. Scottish tartan is a coverted commodity for tourists. GB is among the largest exportes of footwear – over 200 mln pairs of boots and shoes are produced annually. Food, drink and tobacco is a large and sophisticated processing industry which accounts for a growing proportion of domestic demand.

Nearly 80% of land area is used for agriculture.Agriculture in GB is intensive and highly mechanised.There are three types of farming in GB: pastoral, arable and mixed. (The fourth type – crofting – is in the decline). Arable farming takes the lead in the eastern parts of England and Scotland.

The land utilized for horticulture is about 250000 hectares. Most popular vegetables in GB are tomatoes, lettuce and paprica. One more agricultural product always in demand is flowers and pot-flowers.Britain’s second major source of food is fishing. It is also an important sphere of employment.As to forestry, woodland covers about 9% of the total area. Britain imports up to 90% of timber, esp. from Scandinavia and Russia.

Services include wholesale and retail trade, hotel business, food joints, etc. About 17% of population are employed in trade.

Railways witnessed a closure of many lines lately, some of which are the inevitable result of having built competing lines in the years of railway boom. The former railway stations are converted into malls, concert-halls or galleries. One unique detail of this system is Eurotunnel, running between Folkstown and Calais. It was constructed in 1994 at the cost of 10 billion pounds. Now the undersea crossing takes approximately 35 minutes. Another unique system is the London tube waterways are experiencing a considerable revival of interest; they are increasingly used for recreation, freight-carrying and contribution to the environment (land drainage and water supply).

Ports: the type which has grown rapidly in recent years is ferry-port.Road haulage has a dominant position in the movement of inland freight, accounting for 80% tonnage carried. Aerotraffic: Heathrow is the busiest international airport in the world: 54 mln people go through it annually.

The Main Economic Regions.As to the rate of economic growth and development they are classified into 3 groups: developing, depressive and intermediate. The South East and East England are considered developing, The North, Wales, Scotland and Nothern Ireland are dpressive. The rest are intermediate.