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» 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

                                                                       Head work

                                                                       __________F J. Zimalieva

«___»______________2011г.

Student Executive

Unit 103

________Šatilova N. V.

«____»_____________2011г. 

                                           Buzuluk 2011 
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.