Notesale: Turn your study into money

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The UK has an opportunity to improve exports thanks to strong growth in China
and other developing nations
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The UK led the industrial revolution during the 19 th century, and became a well known figure
within not only the European, but also the worldwide economy
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Before the start of the 20 th century, output per
capita began to significantly rise which led to a notable increase in living standards in the
UK, however relative economic decline was experienced soon after due to other nations
beginning to catch up with the UK economically, such as the USA and Germany
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The Great Depression also hit the UK following
the Wall Street Crash in America, and by 1933 unemployment in the UK was at 20%
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The UK economy has since experienced manufacturing industry losses, especially in the c ar
industry, but also has grown significantly through banking and financial services
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The current UK export trade is made up mainly of
financial services, medicines and banking expertise over visible goods, which are heavily
imported into the UK from other nations, in order to support the country’s growing
consumer demands
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87 trillion
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182 trillion, compared to the US$2
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Economic liberalisation in China began in 1978, and since then the country
has become one of the fastest growing economies in the world, with a GDP growth between
2001 and 2010 of 10
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Growth has largely been facilitated through investment and
exports, and China is a global leader in manufacturing due to its low labour costs, high
productivity, and relatively good infrastructure
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China’s main export is machinery and
transport equipment, followed by textile and rubber products, and their main imports consist
of machinery and transport equipment also, then non edible raw materials, and also mineral
and fuel materials are demanded
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The strong growth rates within China’s economy has opened many doors for countries to
provide raw materials and equipment to fuel the nation’s rapid movement into industry, but
it is not just industrial supplies that China is demanding
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This means that aggregate demand will have risen and therefore more consumer goods will
be demanded now in comparison to around 30 years ago – and this means China’s imports
will rise as foreign consumer goods become more accessible due to higher disposable
incomes
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Furthermore, the increased disposable and also national income may lead to
an increase in investment and so China’s manufacturing industries may experience vast
increases in quality
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This may then bring benefits to the UK
such as an increase in export demand due to the higher quality of finished goods – for
which China can be considered partly responsible for
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The South Korea – EU FTA was said to be worth £500 million to the UK, so making
use of agreements such as these provide the perfect platform for the UK to become a larger
exporter of goods and raw materials, especially with economies which are developing
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8
billion
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Over the past ten
years, UK goods exports to Taiwan have remained relatively stable while exports of services
have grown steadily, with UK exports of services rising by 14% each year since 2000, and
reaching £1 billion in 2011
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The main
sectors include infrastructure, environment and energy, financial services, ICT, life sciences
and also creative industries
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There are currently around
300 UK companies located in Taiwan, including financial and business services,
infrastructure, and environmental technology
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The UK also offers economic stability, low inflation and low levels of taxation,
which also appeal to Taiwanese firms
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China currently has a
large proportion of its efforts focussed on manufacturing and construction, and although its
services sector is growing, the marketing of UK financial and banking services to Chinese

firms may be the key to opening up UK services exports to a new market
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The recent slower paced growth in China may also lead to
China requiring a more steady paced trading relationship, which the UK could offer through
our strong services sector which may be of particular use to Chinese service sector
development efforts
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For example the rapid expansion of the Chinese economy has led to huge
pressure on raw materials such as metals, and particularly fuel – such as coal, oil, and gas
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This is because as a nation we suffer greatly from
energy insecurity, with very few reserves of our own, so we are heavily dependent on other
countries for our energy supplies
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This deal has not only led to further price pressures,
adversely impacting other nations, such as the UK and USA, but also has awoken political
indifferences
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This prospect
of threat leaves the UK and other countries in the EU in a poor position for increasing
production of not only export goods, but also domestic goods
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This has meant that the environmental degradation in
China has not been reduced, and droughts in the north aswell as flooding in the south of the
country has increased and worsened, as has China’s contribution to global climate change
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This was facilitated by introducing a greenhouse gas emissions reduction
target of 80% by 2050, and 34% by 2020, and also the introduction of carbon budgets
every five years to make sure targets are on course
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3%, suggesting strong progress, along with the UK’s meeting of the
Kyoto protocol targets – the United Nations climate change framework – where the UK is
one of only a few countries to actually meet these targets
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In conclusion, the main deciding factor into whether or not UK exports can benefit from the
economic development of nations such as China depends on the short or long run
considerations
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In the short run, the current balance is likely to become more negative if exports are
expanded – due to investment
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Despite this reasoning, the
UK’s share of world exports has fallen by almost 50% from 6
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4% in 2011,
which may act to signal to some that the UK needs to increase its export potential to
compete with the rising superpower economies which have proven ever growing in recent
years
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Instead, the decline in UK export shares on the world market encourages the expansion of
already growing sectors in the UK such as pharmaceuticals, insurance and financial services
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8% increase in the first quarter of
2014, representing the strongest growth rate since the third quarter of 2011, theoretically
this enables the UK to move forward and use exports to its advantage to improve its
economic position, through the opportunity rich world economic environment of newly
emerging economies in need of trading partners
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So it becomes a case of seeking suitable partners who will not only
benefit the UK, but also lead to the UK benefitting them – which would encourage a long
term partnership, which the UK could use as a means increase economic security

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