1. Using examples, distinguish between the economic core and economic periphery of the UK. (4)
The economic core of a country is the centre of economic activity. In the UK this core is London and the South East which are typified by a vibrant economy which attracts investment and workers moving to find jobs. The periphery is often a declining region, where investment levels are low and there is often an outward movement of workers, who leave seeking jobs elsewhere. In the UK, the South West and North East could be described as the periphery.
2. Define what is meant by the letters GVA. (1)
GVA is an abbreviation for Gross Value Added which refers to the increase in value for the economy due to the production of goods and services.
3. Distinguish between GVA and GDP. (2)
Gross Value Added (GVA) refers to the increase in value for the economy from the production of goods and services, but does not include taxes such as VAT in the calculation. Gross Domestic Product (GDP), however, is the total value of goods services and raw materials produced in a country and so does includes, for example, sales taxes.
4. In terms of GVA, where is the most productive region of the UK? (1)
The most economically productive region of the UK is West Inner London with a GVA of around £135,000 per head.
5. Why might Aberdeen and North East Scotland be considered as an economic resource frontier? (2)
Aberdeen is the centre of North Sea oil and gas exploration and extraction and as so can be considered a resource frontier because of its importance to the extractive industries.
6. What is meant by the term de-industrialisation? (1)
Deindustrialisation is the process by which heavy industries such as shipbuilding and mining are replaced by tertiary industries such as services.
7. Suggest why the Inner London regions are so important to the UK economy. (3)
The two inner London regions are responsible for adding the most value to the British economy. Inner East London has a GVA of £40,000 per head while Inner West London has a GVA of around £135,000 per head. These two regions produce a very high percentage of the total value in the UK economy. For example, the Gross Value Added for Inner West London is ten times larger than that for the Gwent Valleys in South Wales.
8. Suggest reasons why London receives more investment than Cornwall. (3)
London is the economic core of the UK and so tends to attract more investment from businesses as the region already contains a well-developed infrastructure and contains large numbers of trained workers to fill job vacancies. With a high population density, London will receive more government investment, as there are a greater number of needs to be met in the city. There will be greater political pressure to deliver investment for London as there are 73 MPs with constituencies in London but just 6 in Cornwall. Since Cornwall, is in the far south-west of the country with relatively poor transport links the county is less attractive to businesses as locating there increase the costs of operation, such as logistics.
9. Suggest reasons why large infrastructure projects may help a region in both the short and long term. (4)
Large infrastructure projects, such as London’s Cross-rail, can help the economy of a region by creating supply chain and construction jobs during the initial phase of the work. These jobs may have a multiplier effect in the local economy. Landowners may also benefit from the purchase of the property for the project. Once the project is complete the infrastructure may encourage further inward investment to the region, as it will be more attractive businesses. These new jobs can also benefit the local economy, further adding to the multiplier from the construction phase.
10. Explain why the decline of industries such as coal mining, ship building or steel manufacture can have a damaging effect on local economies. (4)
When older heavy industries decline, such as coal mining in South Wales or ship building on the Clyde, the loss of jobs can have a devastating impact on the local economy. Fewer workers with disposable incomes can see a decline in sales and service industries in the region. This decline in economic activity can have a knock-on effect through the economy with more business closing in the former supply chain and in services used by the former workforce. Skilled workers may move away in search of work, making the area less attractive to new businesses considering moving to the region.
11. Using examples, explain how government policies can impact on the economic development of different regions within the UK. (6)
Government policies can have a significant impact on the regions. Decision to give foreign companies tax-free periods, or help with infrastructure costs, can encourage inward investment, such as happened with the Nissan car plant in Sunderland or Toyota’s plant in Derby. Creating new locations for industry can see them expand, such as with the expansion of financial services into the London Docklands. Conversely, some policies can see areas decline. The British government decision to close Britain’s deep coal mines in the 1990s saw dramatic declines in the fortunes of former mining communities with high levels of unemployment and social problems. Government policy to allow steel mills to close saw the Redcar steel works shut in 2015, with the loss of 1,700 jobs, with another estimated 5,000 jobs effected nearby
12. Using the example of Salford Quays, explain why local and national government may wish to redevelop areas where previous industries have declined or closed. (4)
Salford Quays shows how government investment can help a region regenerate and in the process turn a declining area into one of growth. The former Manchester Docks, which closed in 1983 with the loss of 3,000 jobs, was an area of decline and despair in the mid-1980s. Plans by Salford City Council to redevelop the docks gave hope to the area. Construction of new hotels, housing, the Imperial War Museum (North), The Lowry Theatre, sport facilities, a retail centre and most recently MediaCityUK, have created new jobs in construction and the facilities themselves. This has created a vibrant part of the city with fewer social problems which also adds value to the local economy and tax base.
