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TheU.K.EconomyUnit4Contents:1.ABriefIntroductiontoU.K.Economy2.AbsoluteDeclineandRelativeDecline3.RecentHistory4.TheCurrentU.K.Economy5.CaseStudy:TheAerospaceBritainisoneofthemajormarketeconomicsintheworld.Itisamemberstateofthesevenmajorindustrializedcountries(G7).Itisthefirstcountrytointroduceaneweconomicsystem:thecapitalistsystem.economicsystemandstructureFreeenterprise,marketeconomyAdamsmithAninquireintothenatureandcausesofhewealthofnationsLaissez-faireThepublicsector/thestateownedenterprisesTheprivatesector/privateindividualsmonopolyP46TheEvolutionoftheBritishEconomysincetheWarTheevolutionoftheBritisheconomysinceWWIIfallsintothreeperiods:(1)Steadydevelopmentinthe50sand60s:TheBritisheconomyinthisperiodischaracterizedbyslowbutsteadygrowth,lowunemploymentandgreatmaterialprosperitywithrisingstandardsofconsumption.(2)Economicrecession经济滞胀inthe70s:Inthe1970samongthedevelopedcountries,Britainmaintainedthelowestgrowthrateandthehighestinflationrate通货膨胀率,andthehighrecordoftradedeficits贸易赤字.(3)Economicrecoveryinthe80s:Anoutstandingfeatureoftheeconomicrecoveryinthe80swasitslength,lastingsevenyears.Anotherwastheimprovedfinancialpositionofthegovernment,withstrongercurrentaccountofthebalanceofpayments国际收支大大盈余.MeasurestakenbyMrs.Thatcher'sgovernmenttoimprovetheeconomyMrs.Thatcher‘sgovernmenttooknumerousmeasurestoimprovetheefficiencyoftheeconomyduringthepastdecade,usingbothmacroeconomicandmicroeconomicpolicies.宏观经济政策和微观经济政策(1)Macroeconomicmeasuresweredirectedtowardsbringingdowntherateofinflationandachievingpricestability.(2)Microeconomicpolicieswereaimedatworkingwiththegrainofmarketforcesbyencouragingenterprise,efficiencyandflexibility.MiningandManufacturingIndustriesBritain'soilandnaturalgasNaturalgaswasdiscoveredin1965andoilin1970undertheNorthSea.TodayBritainisnotonlyself-sufficientinoilbutalsohasasurplusforexport.Thetransportanddomesticheatingsystemsmostlydependonoil.Sodoesthefoodsupply,becausemostagricultureishighlymechanized.Modernfarmingrequiresthingswhicharealloil-based.TodayBritainhastherichestenergysourcesintheEuropeanUnion,withmorethan60offshorefields.Britainisnowtheworld’seighthlargestproducerofcrudeoilandnaturalgasliquids.coalminingCoalwastheprimarysourceofenergyinBritainformanyyears.Itwasoncethelargestproducerofcoal.TodaythecoalindustryinBritainisonthedecline，thenumberofminers,andthetotaloutputhavebeenfalling.Thereasonsforthedeclineareasfollows:exhaustionofoldmines,costlyoperationsofextraction提炼,pooroldequipment,littleinvestment,fallindemandduetoimportsofcleaner,cheaperandmoreefficientfuels,etc.Britain'sironandsteelindustryBritain’sdepositsofironoreplayedanimportantroleintheIndustrialrevolution.Itisstilloneoftheworld’smajorsteel–productingnations.ButtodayBritishironandsteelindustryisdecliningforthefollowingreasons:1.Localsuppliesofironorehavebecomeexhausted;2.Oldfashionedfurnacesformakingcoke焦炭cannotrecovervaluableby-products;3.Blastfurnaces,steelworks,androllingmills高炉、钢铁厂和轧钢厂areoftenseparatedfromeachotherandthuscannotperformaswellasmorecompactoperation;4.Manysteelworkshavetobecloseddown,causingmajorunemploymentinanarea.TheTextileIndustryThemaintextileproducingregionsofBritainaretheEastMidlands,Yorkshire,Humberside,约克郡和汉伯塞德郡andNorthernIreland.Newindustriesincludemicroprocessorsandcomputers,biotechnologyandotherhigh-techindustries.TherearethreeareasinBritainwhichhaveseensomehigh-techindustrialgrowth:(1).theareabetweenLondonandSouthWales,(2).theCambridgeareaofEastAngliaand(3).theareabetweenGlasgowandEdinburghinScotland.ThethirdareaisthemostspectacularofthethreeandisnowoftenreferredtoastheSiliconGlen.Bytheendof1985halfofBritain'smicrochipoutputwasestimatedtohavecomefromScotland.ThereasonsbehindthedeclineofBritain'stextileindustryare:(1)Exportsoftextileshavenotcompetedwellwiththoseofotherforeignproducerswhohavemanagedtoproducecheapergoods.(2)TherehasbeenariseincheaperimportsoftextilestoBritainfromforeignproducers.(3)Poorandoutdatedmanagementdecisionshavecausedproblem.(4)Substitutionsofhuman-madefibreshavebeenmadefornaturalfibres.(5)Animprovementofoutputperworkerhasbeenachieved,duetomechanization.ForeignTradeandAgricultureBritainisatradingnation.Visible&invisibletradeP52DeficitonvisibletradeandasurplusoninvisibletradeBritainisanindustrializedcountry,butitsagricultureremainsimportant.1.Arablefarming&livestockfarmingP52-53Anationofsheep-farmers2.AgriculturalpolicySubsidizingthepricesCommonAgriculturalPolicyIntroductiontoBritishandAmericanCultureMargaretThatcherSignificanceNicknamed“TheIronLady”Thelongestservingfrom1979to1990ThefirstwomanPrimeMinisterintheU.K.EconomicBeliefSmallgovernmentandfree-marketeconomicsPolicyPrivatizationofstateindustryBritishAirways;BritishTelecom;BritishPetroleum;theelectricity,gasandwatercompaniesweresoldoff.MargaretThatcherThatcherismreferredtothepoliciesputforwardbyMargaretThatcher,thefirstwomanprimeministerinEnglandin1979.Themaincontentsofherpoliciesincludedthereturntoprivateownershipofstate-ownedindustries,theuseofmonetar