UK economy I. General Survey Britain was the first country to start the industrial revolution in the 1 8th century Britain is a capitalist country The characteristic of the economic system of capitalism that it protects private enterprise. Britain began its market economy about 300 years ago.( China started its market economy in 1992.) It is now one of the major market economies in the world. It has become a member state of the European Community Britain is a trading nation why do we say that britain is a trading nation? -How do we understand that britain is a trading nation? why does britain rely much on foreign trade? In britain the domestic market is limited So. it has to find more markets outside the country. It has to find more markets in the world Each year Britain exports some one-third of its gross domestic product. It is the fourth largest exporter in the world Its exports account for about 5% of the world s total trade volume. Britain is also one of the worlds largest importers. Since Britain is the first country to undergo the Industrial Revolution, many of its mineral resources have been nearly exhausted Because Britain lacks raw materials, or we may say its home supply of raw materials is inadequate, Britain has to buy up a large proportion of the raw materials sold in the world market. Britains major trading partners are industrialized countries -What were the characteristics of britains foreign trade? Since britain relies much on its foreign trade. we should be clear about the characteristic of Britain's foreign trade. The pattern of Britain's foreign trade was characterized in the past, after the Second World War, by a deficit on visible trade and a surplus on invisible trade. Visible trade refers to(transactions) trade of visible concrete commod ities, e.g. the trade of goods, machines, oil, and agricultural products Invisible trade refers to activities like shipping, banking and other services What is the situation of the foreign trade in britain now? Its foreign trade began to be balanced after oil and natural gas were discovered and explored from the North Sea in 1975. Prime Minister Margaret Thatcher's privatization program and pragmatis(实用主义) helped to increase the competitiveness of British products in the world market Britain joined the European Community(Now called European Union)in 1973 The European Community consists of 3 communities set up by treaties-the European Coal and Steel Community(ECSC), the European Economic Community (EEC),and the European Atomic Community(Euratom). The community is to promote economic expansion by means of a common market14 UK economy I. General Survey Britain was the first country to start the industrial revolution in the 18th century. Britain is a capitalist country. The characteristic of the economic system of capitalism is that it protects private enterprise. Britain began its market economy about 300 years ago. (China started its market economy in 1992.) It is now one of the major market economies in the world. It has become a member state of the European Community. Britain is a trading nation. --Why do we say that Britain is a trading nation? --How do we understand that Britain is a trading nation? --Why does Britain rely much on foreign trade? In Britain, the domestic market is limited. So, it has to find more markets outside the country. It has to find more markets in the world. Each year Britain exports some one-third of its gross domestic product. It is the fourth largest exporter in the world. Its exports account for about 5% of the world’s total trade volume. Britain is also one of the world’s largest importers. Since Britain is the first country to undergo the Industrial Revolution, many of its mineral resources have been nearly exhausted. Because Britain lacks raw materials, or we may say its home supply of raw materials is inadequate, Britain has to buy up a large proportion of the raw materials sold in the world market. Britain’s major trading partners are industrialized countries. --What were the characteristics of Britain’s foreign trade? Since Britain relies much on its foreign trade, we should be clear about the characteristic of Britain’s foreign trade. The pattern of Britain’s foreign trade was characterized in the past, after the Second World War, by a deficit on visible trade and a surplus on invisible trade. Visible trade refers to (transactions) trade of visible or concrete commodities, e.g. the trade of goods, machines, oil, and agricultural products. Invisible trade refers to activities like shipping, banking and other services. --What is the situation of the foreign trade in Britain now? Its foreign trade began to be balanced after oil and natural gas were discovered and explored from the North Sea in 1975. Prime Minister Margaret Thatcher’s privatization program and pragmatism ( 实用主义 ) helped to increase the competitiveness of British products in the world market. Britain joined the European Community (Now called European Union) in 1973. The European Community consists of 3 communities set up by treaties—the European Coal and Steel Community (ECSC), the European Economic Community (EEC), and the European Atomic Community (Euratom). The community is to promote economic expansion by means of a common market