The Impact of Globalisation on the UK Economy- My Essay

The Impact of Globalisation on the UK Economy- My Essay

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Nicole Moyo
The Impact of Globalisation on the UK Economy
Globalisation involves policies by the government to achieve their macroeconomics and
microeconomic objectives. In practice it means there is a greater flow of labour, capital and
trade between different countries. The impacts of Globalisation vary from country to country
and different governments adopt different strategies in order to encourage or discourage
globalisation where necessary.
Before discussing the impact of Globalisation, one must understand the actual causes of
Globalisation, first and foremost the growth of free trade can contributed to this as
economies rely on importing raw materials and exporting to foreign markets. Also Newly
Industrialised countries such as China & Japan are taking the place of traditional economic
superpowers in the secondary sector of the world. Growth in number and influence of
multinational companies, technology and everchanging modes of transport have been key to
Globalisation.
The United Kingdom is one of the largest economies in the world. Traditionally the
economic bias was manufacturing but this has been largely replaced by services including
ecommerce.
This essay will look at how the process of globalisation has affected the UK's economy in
areas of trade, finance markets, income distribution and environmental issues and analyse
the strategies that the British government has employed to encourage economic growth and
development.
In the past decays the UK have experienced significant increases in international trading and
investments flows due to globalisation, which leads to high levels of economic growth.
Historically, from 1955 until 2011 the United Kingdom's average quarterly GDP Growth
was 0.58 percent reaching an historical high of 5.30 percent in March of 1973. The HDI
increased from 0.749 in 1980 to 0.873 today, placing United Kingdom below the regional
average.There has also been an increase in overall education level and overall reduction in
poverty.
As mentioned above, globalisation encourages international trading and economic growth,
and the UK has benefited particularly from this. The UK's surplus in Trade in Services
increased to an estimated £6.1 billion, up from £6.0 billion in October.
Although globalisation has caused a significant economic growth and development in UK,
these benefits of globalisation are not equally enjoyed by the whole population. In the
guardian it claimed "annual average income in the UK of the top 10% in 2008 was just
under £55,000, about 12 times higher than that of the bottom 10%, who had an average
income of £4,700."
The last area that will be discussed is environmental issues in the UK caused by globalisation
as an economy grows, so does its demand for resources and environmental problems arises.
The UK imports import a third of their food because the climate doesn't allow them to grow
the necessary food which their population has come to expect therefore imported foods
have to be transported a long way so have high food miles and a large carbon footprint.
In conclusion Globalisation has enhanced United Kingdom's macroeconomic performance
over the past decade but with the everchanging economy it is difficult to say whether this
will continue throughout the decades to come.

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