The economy of england
The Ministry of education and science of the Russian Federation
Buzuluk pine humanitarian Institute (branch) of the Federal Public Budget of educational institutions
higher vocational education
"Orenburg
State University»
Faculty of «Economics and law»
Department of Humanities and social sciences
On
the discipline «English»
Summary
On
the subject:
«THE ECONOMY OF ENGLAND»
«___»______________2011г.
Student Executive
Unit 103
________Šatilova N. V.
«____»_____________2011г.
Table Of Contents
Introduction
1. Snapshot
1.1. Natural resources
1.2. Industry
1.3. Agriculture
1.4. Services
1.5. Finance
2. Economic policy
2.1. The stability of the economy
2.2. Fiscal policy
3. Regulation of industries
3.1. Competitiveness
3.2. Business support
3.3. The development, quality and standards
3.4. Training
3.5. Development of regional economy
3.6. Competition and Antimonopoly Law
4. Private enterprise
4.1. The legislation
4.2. Regulation of the private sector
5. International relations
5.1. The United Kingdom and Commonwealth
5.2. The United Kingdom and the European Union
Introduction
United Kingdom today is a country with highly developed, strong and independent economy.
Recovery after the second world war took almost forty years. In addition to internal resources, the process of recovery have spurred the entry of Britain into the European Community in 1973, that contributed to the rise of the competitiveness of the country. Now the United Kingdom is in the forefront among the developed countries in terms of growth, productivity and competitiveness. The share of manufacturing and engineering for the years after World War II fell from one third to one fifth, while the services sector has expanded considerably and begun to bear a large part of the income of the country. United States and Japan-the most significant trading partners of the UK, and Japanese companies often choose the UK as a base in Europe. Other developing countries in East Asia with export-oriented economies are actively involved in the open market in the UK. Thus, the United Kingdom actively cooperates not only with the Member countries of the Commonwealth, but also from Europe, Asia and North America.
80 years have witnessed a massive privatization of State enterprises, which were nationalized in previous years. Also climbed the average level of life, although still better off dividing the territory of South-Eastern part of the country, including London, and the less wealthy territory West and North. Unemployment and inflation were gradually reduced, but remained fairly high. The country played the role of a global financial leader, along with the discovery of natural gas and petroleum in the North Sea, reducing the dependence of the economy from more traditional sources of energy, and greatly eased the domestic economy and economic policies of the Government.
Main points of the Government's economic policy became regulars and frequent change of interest rates, a gradual reduction in direct taxation, reducing the role and impact of professional associations, promoting real estate among the population, increasing the share of natural persons-shareholders companies, raising the level of actual students of educational institutions to work in the real world. Considerable efforts were being made to improve the productivity and competitiveness of goods and services.
1. Snapshot
1.1. Natural resources
Valuable natural resources in the territory of Great Britain is not so much. Once the most important iron ore now dropped almost to zero. Other economically important fossil ore production include lead, which meets the needs of the economy only half, and zinc. Plenty of other resources, such as chalk, limestone, clay, sand, gypsum.
On the other hand, the United Kingdom has large reserves of energy resources, including oil, natural gas and coal than any of the countries of the European Community. Previously, a vital source of energy coal continues to lose its value. If you compare coal in 1913, when it was made more than 300 million tons of coal to more than one million workers today, coal production fell more than three times with an even greater decline in the level of workers in the extractive industries. The plant continues to consume large amounts of coal, but with increasing competition from alternative fuels coal remains in not the best situation.
Discovery of oil deposits in the North Sea has led to the rapid development of the oil industry. Since the beginning of 1975, the number of extracted oil annually is increasing every year, which made the Uk virtually self-sufficient in terms of oil consumption, and even its exporter. With an average level of production of 2.6 million barrels per day, the United Kingdom is the sixth line of the global oil producer. Oil reserves in the UK reaching number 770 million tons.
With
the beginning of the extraction of natural gas in the year 1967 in cities
gradually replaced coal gas and the gas pipeline built throughout the
country. Reserves of natural gas are estimated within 22.7 trillion
cubic feet.
1.2. Industry
As indicated above, the coal mining industry declined and the energy sector of the economy was transformed domestic deposits of natural gas and oil. Nuclear fuel has slightly increased the level of energy in the country, while the hydroelectric plants retained their positions, and in some places, for example, in Scotland, remained the main source of energy. The vast majority of energy is produced by conventional power plants.
In general the scope of production continues to decline, both in terms of workers in this area and in terms of share of the (now less than one quarter) of the gross national product (GNP). This sector of the economy was the main cause of the rapid increase in unemployment in the early 80 's. When production began to grow again, there has been a significant increase in productivity and profits. The most important industries are mechanical engineering, food industry (including the production of non-alcoholic and alcoholic beverages), tobacco and chemical industry, paper and printing industry, light industry. The most rapidly developing sectors of industry have chemical, timber, furniture, rubber industry and the production of plastics. Within the chemical industry has been particularly active in the pharmaceutical industry has developed. Food and light industry and mechanical engineering as a whole are below average.
In
the 1980s substantially increased importation of industrial production,
but despite this, the United Kingdom continues to export a significant
portion of their goods, the balance is still in favour of imports. However,
support a competing industry is considered to be of prime importance
for international trade, where it has more weight than the scope of
services.
1.3. Agriculture
United Kingdom is in agriculture among the European countries so that this sector of economy it accounted for less than two per cent of the population. When commercial intensification of crops and the high level of mechanization on certain positions, the volume of the agro-industrial production exceeded demand in the country. Gradually decreases the level of employment in this field. To create alternative employment for people in rural areas, the Government is trying to move labour in other sectors. Area of land used in agriculture (about three quarters of the total area), also decreases, while the land suitable for growing cereals are pasture land.
Public policies towards agriculture involves raising productivity and living standards of workers in the agro-industrial sector, while maintaining reasonable prices for goods. To achieve this, a system of minimum prices on domestic goods and import duties. Producers of beef and mutton specially charged in addition to making their products competitive on the European market. Recent measures include restrictions on milk production and compensation to farmers for unused land.
The
most important Mead are wheat, oats, rye. Much of the grain goes to
raise cattle, but the rest goes to the production of bread, cereals,
etc. in the animal husbandry is the most important cattle. In the agricultural
sector tries to maintain a high level of self-sufficiency, with the
exception of sugar production and cheese that are imported.
1.4. Services
The most notable phenomenon, characterizing the UK economy, has been the growth of services. It reflects the increase in real incomes, as well as any balance on goods and services. Especially won the financial sector and the entertainment and tourism. While some services such as public transportation, laundry and cinemas have lowered the share of income due to move in the direction of own goods such as cars, washing machines and televisions, it helped develop service sectors that sell and repair those products. Other services sector, which increased demand include hotels, tourism, retail trade, finance and sports. Many other sectors, previously holding a small share of the market or not existing at all, have become much more significant. They include the production of computers and software, advertising, market research, exhibits, presentations and conferences. Recently, the United Kingdom also actively developing sector learning foreign languages, especially English, secondary and higher education, attracting foreign students.
1.5. Finance
While the United Kingdom traditionally has maintained a position of financial leader of the world in 80 years, there have been significant changes in the structure and regulation of financial institutions. They have influenced the system banks, building societies, insurance, stock exchange, as well as the consumer goods market. Some of the earlier clear delineation of spheres of activity have become more blurred, for example, if the earlier loans for the construction of the houses were the exclusive prerogative of building societies, these loans have been issued as banks and insurance companies. There have been two related changes: the transformation of the branches of building societies in the actual banks with their own stockpile of cash and the expansion of the activities of all three types of organizations in the real estate market. Building societies are also involved to some extent in services, investment, insurance and land services.
London, continued to grow as a center of international financial transactions. Increased capital inflows, as well as currency exchange and securities trading thus in London presented a large number of foreign banks. Increased competition and the evolution of technology has accelerated the process of Exchange and trade stock exchange has been reorganized, and the traditional system of brokers and džobberov was abolished. As a result, a number of companies, which have become an intermediary between the British and foreign banks and former brokers and džobberami. In the late 80 's and has laws regulating these new financial organizations. Had even had to create new supervisory bodies that monitored the implementation of the letter of the law in this field of activity.
All commercial banks under the supervision of the Bank of England, which has the right to issue banknotes in England and Wales (Scotland and Northern Ireland have limited rights to produce the money in their territories). The Bank of England licensed banks, which are mostly with the public (like Sberbank), investment, mortgage and other British or foreign banks. Lines in this sector too has become less distinguishable, while banks, working with individuals, divided into mortgage banks, insurance, banks, securities, etc., the Bank of England also controls the refinancing rate, which affects the structure and level of interest rates. He was actively interfering in the foreign exchange markets, the stability of the pound. The pound sterling is one of the major currencies, while London is one of the most important trade centres in the world.
Savings people invested in the development of the economy through a network of financial institutions. Examples can serve as insurance companies, pension and investment funds. Others specialize in specific areas; Thus, the financial organizations provide money mortgage. There are still companies which finance leasing equipment and the medium-and long-term capital markets, which also financed the banks or stock market, including market innovative technologies.
2. ECONOMIC POLICY
The main components of State economic policy, which aims to raise the level of employment and economic growth are:
support economic stability as a basis for economic growth in the long term;
improving productivity through the promotion of investment and enterprise development;
the creation of new jobs;
creating more homogeneous and equitable society.
HM
Treasury is a government body that carries out monetary and fiscal policies
of the State. It is also responsible for economic policies that it implements,
together with other ministries: trade and industry, education and employment,
the environment, transport and the regions.
2.1. The stability of the economy
The Government believes that economic stability is a prerequisite for achieving high and stable levels of employment and economic growth. It presented a new program that will keep inflation within 2.5% and stimulate investment.
In October 1997, it was decided not to join the single European currency, were not obvious implications for the UK economy. The Government has postponed a decision on this matter for five years, while deciding to prepare the legal framework for the transition to a single currency, provided that clear answers to the following questions:
1. whether the country's economy with the economies of the United Europe sroslas′;
2. There is enough flexibility in the economy to adapt to such changes;
3. What would be the impact of the transition to a single currency for investment in the UK;
4. What will be the impact of this decision on the financial services sector;
5. well whether accession will affect the level of employment.
The
British Government is trying to create conditions for economic stability
throughout the world. The aim of these measures is to prevent the global
economic crisis, one of whom, such as occurred in 1998, and indirectly
influenced the economy of Great Britain.
2.2. Fiscal policy
Uk fiscal policy is based on two inviolable rules:
· the Government makes the loans only to invest in certain sectors of the economy rather than spend on expenses;
· the amount of domestic public debt ratio to GDP has consistently and wisely.
· Fiscal policy should be implemented in accordance with the following five principles:
· the openness of the goals and objectives of fiscal policy and all spending taxpayers ' money;
· stability in the implementation of fiscal policy and its impact on the economy;
· responsibility for the allocation of public funds;
· Justice;
· the effectiveness of the design and implementation of fiscal policies, management of both costs and revenues of the State;
The State budget was adopted and is being discussed by Parliament annually along with documents of economic and fiscal policy of the State for the near future.
3. Regulation of INDUSTRIES
The Ministry of trade and industry (DTI) aims to enhance the competitiveness of the UK and its scientific and technical superiority, in order to achieve higher levels of productivity and economic growth. It has four specific objectives:
1. encourage entrepreneurship, innovation and higher productivity;
2. maximize the use of scientific, industrial and technological capacity in Britain;
3. create strong market competition
4. develop
a fair and legitimate system of regulating sectors of the economy.
3.1. Competitiveness
The ICC has taken measures to reduce the gap between the levels of efficiency of British and competing companies in terms of productivity and the ability to create new products and services. These include measures to strengthen the capacity of the economy (updating of scientific and technical bases, the promotion of scientific research, the Fund for support of small business), to promote cooperation between enterprises and regions, to enhance competition in the market.
3.2. Business support
Business support-British style is consulting on investments, the companies, international relations and expansion. Works, the so-called "business network", numbering about 1,000 specialist consultants on various aspects of entrepreneurship.
In
March 1999, the Government announced the development of a new law on
small business, which will be sent to his support, relieving him from
certain types of State regulation and facilitate burden of taxation.
3.3. The development, quality and standards
ICC oversees and supports the efficient design and technologies which allow a commercially successful products and services and improves competitiveness.
Quality is an important aspect of the whole business cycle of the product-development, production, marketing and delivery to the consumer. Many manufacturers prefer an independent assessment of the quality of their products, as well as receive a certificate of international quality standard BS EN ISO 9000.
In the UK has its own independent Institute of standardization, which is a member of both the European and world organizations concerned with standards and standardization. Working with consumers, producers and Governments, it creates standards that correspond to the requirements of the market, trade and regulation of the economy.
3.4. Training
Preparation
of qualified, skilled and quickly adjusting training-mortgage Uk competitiveness
in the global market. The Government announced several measures it will
take to improve training, open up new opportunities for retraining and
advanced training, including the establishment of a new University of
industry, which will be used when learning new information and communication
technologies, and a new strategy that will promote the widespread use
of computers in business, education and society.
3.5. Development of regional economy
Regional economic policy designed to boost economic growth and competitiveness throughout the UK. 34% of the total labour force works in the territories, receiving additional assistance from the State.
The main objectives of regional policy are:
-creation and preservation of jobs;
-attracting foreign investment;
-improving the competitiveness of the weaker regions.
In 1998-99, for these purposes was spent about 1.5 billion pounds.
One of the important tasks of the regional policy is to assist in the establishment of linkages between different sectors of the economy. Enterprises can obtain mutual benefit from the establishment of a common infrastructure and maintaining close ties with research institutions such as Cambridge and Oxford. An example of such "srastaniâ" scientific and production can be sector of biotechnologies.
England.
In England's nine regions which fall under programme support, including London.
Measures for the recovery of business in England include:
· promotion of innovation and the use of new technologies;
· provision of enterprises finances, including the establishment of local funds to help small businesses with the prospect of growth;
· promotion of domestic investment;
· promote the strategic use of the funds of the European Union.
Scotland.
In Scotland, focuses on the relationship between education and economy.
Measures of regional policy in Scotland include:
· promotion of efficient production and competitiveness;
· involvement of domestic investment and export promotion;
· financial support for new businesses and expand existing ones;
· improving the environment;
· the increase in the number of jobs and skills.
Wales.
Tasks of the regional economic policy in Wales are to further the economic and social development, promoting efficient industries and international competitiveness, improve environmental conditions. Special attention is focused on the development of close links between enterprises and sectors of the economy, as well as on the introduction of new technologies.
Northern Ireland
Support for regional business in Northern Ireland include:
· attracting foreign investment and the development of medium-sized businesses;
· small business development;
· advice and assistance to companies, including assistance in the transition to new technologies;
· upgrading
of managerial personnel.
3.6. Competition and Antimonopoly Law
The Government seeks to improve the openness and efficiency of the market, both domestic and international, and believed that effective competition is the best incentive for the development of new technologies and improve efficiency. A new competition act comes into force March 1, 2000, which seeks an better protection of both consumers and producers.
This Act will be better able to deal with the monopoly and to maintain healthy competition. He copied with European Union competition law, which governs the actions, damage competition and prevent the abuse of dominant market position. Was rejected by the law, companies could be fined up to 10% of the turnover of the company on the territory of Great Britain, and victims of monopoly companies can apply for the offender to court and claim compensation for damages.
Mergers and acquisitions will not be considered Antimonopoly Committee in cases where they do not affect the competitive situation on the market. Thus, companies harmless merger or takeover will not apply to the Committee for authorization to commit a transaction that will save and those and others from a large cargo of bureaucracy. In General, the agreement will be deemed to have significant impact on the market if the joint share of both companies will be more than 25% of the market. Nevertheless, agreements fixing prices or market allocation will fall under the law, even if the share of companies of less than 25%.
4. PRIVATE ENTERPRISE
In Britain there were nearly 1.4 million companies. All companies operating in the territory of the country, as the British and foreign, are required to register. The majority of enterprises are organizations with limited liability, where the liability of owners of restricted shares of stock that they own.
The
company can be both private (private) and public (public). To become
a public company must meet certain requirements. It must be an organization
with limited liability, equity, and have a minimum required authorized
capital. Only public companies are entitled to put their shares for
sale on the stock exchange.
4.1. The legislation
Laws relating to the establishment, closure and the lifecycle of the company, designed for enterprise management capabilities, support for open markets and to create favourable and safe conditions for investors. In February 1999, the Government proposed to amend these laws:
1. make life easier for smaller firms;
2. simplify some technical points, for example, the rules of the company;
3. the use of modern information technology to improve communication between companies and their shareholders.
4.2. Regulation of the private sector
In March 1999, the Government announced its intention to abolish unnecessary regulation of medium and small business. It works to minimize the gravity of the regulation of business and preferred to do without control where possible. Independent organization advises the Government on improving the efficiency and quality of the remaining measures and verifies their need.
An organization called the management of internal budgetary revenues (Inland Revenue) collects income taxes, taxes on income and capital and stamp duty. The Office of the customs duties and excises (HM Customs and Excise) collects the most important indirect taxes (VAT, etc.). Local taxes collected by local governments.
5. International relations
5.1. The United Kingdom and Commonwealth
The British Empire was built several centuries. First British Steel to control all the lands of the British Isles, then began active trade and exploitation of colonies in North and South America. Emigrants from Great Britain settled in countries such as Australia, South Africa and New Zealand. Traded with some territories in Africa and Asia, who subsequently also became British colonies. By the beginning of the nineteenth century United Kingdom controlled territory where lived a quarter of the total population of the Earth
At the end of theXIX -early XX centuries the Empire was transformed into the British Empire and Commonwealth, Canada, Australia, New Zealand and South Africa have seceded and became self-governing dominions many citizens of these States were descendants of the first British settlers, they thought the UK their home and retain the values of the monarchy, but this attitude changed when the inhabitants of these dominions more evident sense of national identity.
In the MiddleXX of the century the British Empire and Commonwealth became simply the British Commonwealth, after the British Government allowed to secede, the majority of India and Pakistan colonies. became independent in 1947, the year in the 50 's-60 's African colony, split off and then the Asian territory British Commonwealth transformed itself into the Commonwealth, as most former British colonies became independent States they had a choice ... or completely break with its colonial past or remain in the Commonwealth of independent States on the rights of many of the colony decided to stay in the Commonwealth for various reasons. Only a very small part of the former British Empire still-colony, dependent territories and protectorates, such as the Falkland Islands and of Gibraltar.
Currently, Commonwealth-free association of nearly 50 independent countries (including Britain). It has no legal system, the Parliament or of a single political leader. In many colonies can still be seen British influence, such as educational and legislative system, copied from England. But few took a political system based on the authority of Parliament. Some countries have changed it to fit their own needs, others were odnopartijnymi countries, others have developed a Constitution based on several political systems.
The Commonwealth is about a quarter of the population. It includes peoples professing different religions representing different race and nationality, which brings together the history of the struggle against colonialism. The Commonwealth is sometimes described as a "family" of Nations. However, despite the war arising from time to time, quarrels and disorders among these "family members", the Commonwealth operates as a single organization.
The British monarch is a non-political leader of the Commonwealth and has played various roles in different countries, depending on whether the countries of the Commonwealth of kingdoms or republics. The monarch plays an important unifying and symbolic role, which often held the Commonwealth one in times of crisis and conflict.
The Prime Ministers or heads of Commonwealth countries meet every two years at the Conference, which is one of the countries of the Commonwealth. These meetings discussed and sometimes are, common problems, although in recent years there has been a trend toward increasing differences and reducing the role of the United Kingdom in addressing these issues.
In London, Commonwealth Secretariat, which is coordinating the policies of the Commonwealth. In addition, there are many communities of the Commonwealth, libraries, organizations, professional organizations and student exchange programmes. Commonwealth citizens continue to arrive in the UK as immigrants, students and tourists, while in other countries, the emigration of British Commonwealth has declined. English language together with its many dialects is the common language of the Commonwealth, and Commonwealth Games are held every four years. Continues to operate a shared program of Great Britain and the Commonwealth in agriculture, health, engineering and education.
Recently, the question remains whether the Commonwealth was one of the most influential organizations in the world. Traditional feelings of solidarity of the Commonwealth does not already exist, and the United Kingdom has little in common with the rest of the Commonwealth. There is no doubt that this organization is already historic Alliance, rather than political, and certainly not economic. Over the last thirty years the British Government has consistently pushes the country into political and economic spheres to Europe and the European Union, thus moving away from the Commonwealth.
Prior to the entry of Britain into the European Union in 1973, it had the advantage in trade with the countries of the Commonwealth. Membership in the European Union appeared to end trade ties with the Commonwealth of Nations. But a successful trade, albeit not in such amount as the prior to the entry into the EU, continues, despite the fact that the United Kingdom pays more attention to the European market.
5.2. The United Kingdom and the European Union
The idea of European unification has become relevant after the end of the second world war. Had been hanging in the air to create a peaceful and rich Europe, with strong economies and political systems following the devastation and loss of the two world wars of the twentieth century and centuries of enmity and antagonism between European countries.
The foundations of a United Europe was laid in 1957, when six countries (Belgium, France, Germany, Italy, Luxembourg and Netherlands) formed the European Economic Community (EEC). United Kingdom has not acceded to this Union, but helped to establish the European Free Trade Association (EFTA) in 1959, along with countries such as Sweden, Norway, Austria, Denmark, Portugal and Switzerland. United Kingdom reluctantly made rapprochement with Europe, saw its economic and international future trade with the countries of the Commonwealth and the United States. She considered herself an important economic force in the world, and did not wish to be bound by obligations to Europe. In addition, many Britons do not overcome the age-old mistrust of European countries, and felt that integration with Europe will cost them their freedom and dignity.
However, in the 60 's, the British Government had changed its view on future entry into the EEC and attempted to join. The British attempts were stopped by the then President of France Charles de Gaulle, who did not approve of the relationship of Great Britain with the United States (especially on nuclear weapons), disputing the ownership of the UK to Europe and obviously did not like the opponent in the face of British Prime Minister as head of UES.
De Gaulle resigned in 1969, and the new negotiations on the accession of the UK in the EEC started in 1970, the pro-European British Prime Minister Edward hit. In 1972, the British Parliament voted to join the Union, despite growing doubts and rejection of the opposition political parties. United Kingdom, the Republic of Ireland and Denmark joined the EEC in January 1, 1973, left EFTA in 1972.
- The Education System in Great Britain
- The marketing environment
- The modern office: Russian and Western approaches differ
- The modern office: Russian and Western approaches differ
- Theoretical Grammar - Volkova
- The Passive Voice
- The Political System of the USA
- The answers on exam of Stylistics
- The basic features of the British geographical position, topography and climate
- The Battle of Brunanburh
- THE CASE (rule)
- The Central Bank of the Russian Federation
- The Chinese tradition.Wang Chong philosophy
- The decision through diplomatic channels Israeli-Palestinian conflict
