UNITED KINGDOM: Useful Info

The United Kingdom—composed of England, Wales, Scotland and Northern Ireland—is the fourth largest economy in the world, its GNI reaching $ 680.6 in 2003. Once focused on manufacturing, it has developed its services industry and e-commerce.

The UK is a political power and wields great influence in international affairs, as it had done so for several centuries. At one point, the British Colony wielded authority over India, Malaysia and Hong Kong--a testimony to its strength in seafaring, and how its trade thrived beyond Europe’s borders.

Today, the UK is a member of Nato, the United Nations, and the EU, though it has not yet adopted the euro. The City of London is considered to be a global financial centre.

The UK’s literary contributions are immense, including the works of William Shakespeare, Robert Burns, Dylan Thomas and Seamus Heaney.

Quick Facts

Population: 59.6 million (Source: National Statistics, 2003)
Capital: London
Area: 242,514 sq km (93,638 sq miles)
Major language: English
Monetary unit: 1 pound sterling = 100 pence
Main exports: Manufactured goods, chemicals, foodstuffs
GNI per capita: US $33,940 (Source: World Bank, 2005)

Economic Background

The UK has one of the world’s best business environments, ranked 7th out of 60 in a study made by The Economist Intelligence Unit. Many multinationals have offices located on its shores, including many of the world’s top 1000 companies. Though it was the first country to embrace industrialisation, it has successfully shifted the foundation of its economy from manufacturing to services, which now accounts for 60% of its GDP. Only 1% of its labor force is in the agriculture, but the high productivity and efficiency of that industry allows it to service 60% of the country’s total food needs.

The construction industry has recovered from a recession in the early 90’s, but has yet to regain its full strength. Communications is growing, but because of its rapid growth, prices have dipped sharply.

The “industry to watch” is Research and Development, as seen by the tremendous increase of small and medium sized businesses (100 in 2005 alone) that have entered that sector. This has attracted multinationals who see the country as a base for R&D, infusing more funds into UK offices than those located elsewhere. This is particularly clear in the software industry, followed by the pharmaceutical sector. In the last 4 years, there has been s 32% increase in the number of UK-owned ‘R&D vigorous firms’.

In terms of foreign trade, the UK is the world's sixth largest exporter of goods and second largest exporter of services. More than 50% of its trade is with fellow members of the EU, with the US being its biggest non-European partner. The main trading partners of UK in 2003 were European Union (more than 50%), Exports are equivalent to more than one-quarter of GDP.

However, there is a great deal of pressure to increase exports even further, largely due to the account deficit of US $ 15.8 billion.

Business Issues
Business Plan
Countries
Finance
Marketing
Start up
Strategies
Taxation
Technology


Back