british culture ms word

8/3/2019 British Culture Ms Word

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BRITISH ECONOMIC AND BUSINESS.

The economy of the United Kingdom is the sixth-largest national economy in the world

measured by nominal GDP and purchasing power parity (PPP) and the third-largest in Europemeasured by nominal GDP (after Germany and France) and second-largest measured by PPP(after Germany). The UK's GDP per capita is the 20th highest in the world in nominal terms

and the 17th highest measured by PPP. The British economy comprises (in descending orderof size) the economies of England, Scotland, Wales and Northern Ireland. The UK is a

member of the Commonwealth of Nations, the European Union, the G7, the G8, the G20, theInternational Monetary Fund, the Organisation for Economic Co-operation and Development,

the World Bank, the World Trade Organisation and the United Nations.

In the 18th century the UK was the first country in the world to industrialise, and for much ofthe 19th century possessed a dominant role in the global economy. However, by the late 19th

century, the Second Industrial Revolution in the United States and the German Empire presented an increasing challenge to Britain's role as the leader of the global economy.

Despite victory, the costs of fighting both the First World War and the Second World Warfurther weakened the relative economic position of the UK, and by 1945 Britain had been

superseded by the United States as the chief player in the global economy. However, the UKstill maintains a significant role in the world economy.

The UK is one of the world's most globalised countries. London is the world's largestfinancial centre alongside New York, has the largest city GDP in Europe and is home to the

headquarters of more than 100 of Europe's 500 largest companies. The aerospace industry ofthe UK is the second- or third-largest national aerospace industry, depending upon the

method of measurement. The pharmaceutical industry plays an important role in the UKeconomy and the country has the third-highest share of global pharmaceutical R&D

expenditures (after the United States and Japan). The British economy is boosted by NorthSea oil and gas reserves, valued at an estimated 250 billion in 2007. The UK is currently

ranked fourth in the world (and first in Europe) in the World Bank's Ease of Doing BusinessIndex.

Main articles: Agriculture in the United Kingdom and Forestry in the United Kingdom

Agriculture is intensive, highly mechanised, and efficient by European standards, producing

about 60% of food needs, with less than 1.6% of the labour force (535,000 workers). Itcontributes around 0.6% of British national value added. Around two-thirds of the production is

devoted to livestock, one-third to arable crops. Agriculture is subsidised by the European Union'sCommon Agricultural Policy.


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The UK retains a significant, though reduced, fishing industry. Its fleets, based in towns such asKingston upon Hull, Grimsby, Fleetwood, Great Yarmouth, Peterhead, Fraserburgh, and

Lowestoft, bring home fish ranging from sole to herring.

The Blue Book 2006 (page 110) reports that the "Agriculture hunting, forestry and fishing"

added gross value of 10,323 million (at 2006 prices) to the UK economy in 2004.

Construction

Main article: Construction industry of the United Kingdom

The Blue Book 2006 reports that this industry added gross value of 64,747 million to the UKeconomy in 2004. It is the fastest growing sector of the economy - after the 2010 Recession.

Production industries

Electricity, gas and water supply

Main article: Energy in the United Kingdom

The Blue Book 2006 reports that this sector added gross value of 17,103 million to the UKeconomy in 2004. The United Kingdom is expected to launch the building of new nuclear

reactors to replace existing generators and to boost UK's energy reserves.

Manufacturing

Main article: Manufacturing in the United Kingdom

In 2003, manufacturing industry accounted for 16% of national output in the UK and for 13% ofemployment. This is a continuation of the steady decline in the importance of this sector to the

British economy since the 1960s, although the sector is still important for overseas trade,accounting for 83% of exports in 2003. Manufacturing is an important sector of the modern

British economy and there is a considerable amount of published research on the subject of thefactors affecting its growth and performance. After the 2010 Recession it is one of the fastest

growing sectors of the economy - experiencing a mini-boom.

The aerospace industry of the UK is the second- or third-largest aerospace industry in the world,depending upon the method of measurement. The industry employs around 113,000 people

directly and around 276,000 indirectly and has an annual turnover of around 20 billion. Britishcompanies with a major presence in the industry include BAE Systems (the world's second-

largest defence contractor) and Rolls-Royce (the world's second-largest aircraft engine maker).Foreign aerospace companies active in the UK include EADS and its Airbus subsidiary, which

employs over 13,000 in the UK.


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The pharmaceutical industry employs around 67,000 people in the UK and in 2007 contributed8.4 billion to the UK's GDP and invested a total of 3.9 billion in research and development. In

2007 exports of pharmaceutical products from the UK totalled 14.6 billion, creating a tradesurplus in pharmaceutical products of 4.3 billion. The UK is home to GlaxoSmithKline and

AstraZeneca, respectively the world's third- and seventh-largest pharmaceutical companies.

The British motor industry remains a significant part of the sector, although it has diminishedwith the collapse of the MG Rover Group and most of the industry is foreign owned.

Mining and quarrying

Main articles: Mining in the United Kingdom and North Sea oil

The strength of the UK economy varies from country to country and from region to region.

Excluding the effects of North Sea Oil and Gas (officially included in the Extra-regio), England

has the highest Gross value added (GVA) with Scotland close behind, though Scotland has a

higher figure once oil and gas are assigned by country. Scotland had the highest rate of growthover the preceding 12 months, at 4.7%, ahead of even the best performing region of Englandwhich was London with growth of 4.1%. GVA per capita figures for 2008 for the four countries

of the United Kingdom (excluding oil and gas) are:

Rank PlaceGVA per capita

in pounds

1 England 21 020

2 Scotland 20 066

3 Northern Ireland 16 188

4 Wales 15 237

Within England, GVA per capita is highest in London. The following table shows the GVA

(2008) per capita of the 9 statistical regions of England (NUTS).

Rank PlaceGVA per capita

in pounds

1 Greater London 34 786

2 South East England 21 688

3 East of England 19 473

4 South West England 18 782

5 East Midlands 18 041

6 North West England 17 555

7 West Midlands 17 463

8 Yorkshire and the Humber, England 17 096

9 North East England 15 887


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Two of the richest 10 areas in the European Union are in the United Kingdom. Inner London isnumber 1 with a GDP per capita of 65 138, and Berkshire, Buckinghamshire and Oxfordshire is

number 7 with a GDP per capita of 37 379. Edinburgh is also one of the largest financialcentres in Europe.

An oil platform in the North Sea

The Blue Book 2006 reports that this sector added gross value of 21,876 million to the UK

economy in 2004. In 2007 the UK had a total energy output of 9.5 quadrillion Btus, of which thecomposition was oil (38%), natural gas (36%), coal (13%), nuclear (11%) and other renewables

(2%). In 2009, the UK produced 1.5 million barrels per day (bbl/d) of oil and consumed1.7 million bbl/d. Production is now in decline and the UK has been a net importer of oil since

2005. As of 2010 the UK has around 3.1 billion barrels of proven crude oil reserves, the largestof any EU member state.

In 2009 the UK was the 13th largest producer of natural gas in the world and the largest producerin the EU. Production is now in decline and the UK has been a net importer of natural gas since

2004. In 2009 the UK produced 19.7 million tons of coal and consumed 60.2 million tons. In2005 it had proven recoverable coal reserves of 171 million tons. It has been estimated that

identified onshore areas have the potential to produce between 7 billion tonnes and 16 billiontonnes of coal through underground coal gasification (UCG). Based on current UK coal

consumption, these volumes represent reserves that could last the UK between 200 and 400years.

The UK is home to a number of large energy companies, including two of the six oil and gas

"supermajors" - BP and Royal Dutch Shell - and BG Group.

Service industries

The service sector is the dominant sector of the UK economy, a feature normally associated withthe economy of a developed country, and makes up about 73% of GDP. This means that the

Tertiary sector jobs outnumber the Secondary and Primary sector jobs. The service sector isdominated by financial services, especially in banking and insurance. London is a major centre

for international business and commerce and is the leader of the three "command centres" for theglobal economy (along with New York City and Tokyo). It is also a major legal centre, with four

of the six largest law firms in the world headquartered there.

Many multinational companies that are not primarily UK-based have chosen to site their

European or rest-of-world headquarters in London: an example is the US financial services firmCitigroup. The creative industries accounted for 7% GVA in 2005 and grew at an average of 6%

per annum between 1997 and 2005.

Tourism is very important to the British economy. With over 27 million tourists arriving in 2004,the United Kingdom is ranked as the sixth major tourist destination in the world. London, by a


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considerable margin, is the most visited city in the world with 15.6 million visitors in 2006,ahead of 2nd placed Bangkok (10.4 million visitors) and 3rd placed Paris (9.7 million).

Doing Business in the UK

The United Kingdom is renowned for its colourful history and strong sense of tradition that hasbeen shaped by a colonial empire, both civil and European war and a constitutional monarchy.The fourth largest trading nation, the UK is fast becoming Europes leading business centre.

Supported by a long-established system of government and economic stability, the UK is anattractive base for overseas business, offering skills in areas such as research, development and

technology. However, in order to operate successfully in the UK business environment, there area number of important issues to take into consideration both before and during your time there.

UK Business Part 1 - Working in the UK (Pre-departure)

y Working practices in the UKo

In accordance with British business protocol, punctuality is essential at anybusiness meeting or social evento When making business appointments it is best practice to do so several days in

advance.o The British are inclined to follow established rules and practices; therefore

decision-making is often a slow and systematic process.y Structure and hierarchy in UK companies

o Today, UK businesses maintain relatively flat organisational hierarchies. Theprincipal divide is between managers and other ranks.

o In general, the board of directors is the principal decision-making unit. Majordecisions are made at the very top.

oThe British prefer to work in the security of a group-established order with whichthey can identify.

y Working relationships in the UKo UK managers generally favour the establishment of good working relationships

with their subordinates.o The boss often takes the role of a coach, creating an atmosphere of support and

encouragement.o Teamwork is very important, however there exists a strong feeling of individual

accountability for implementation and error.

UK Business Part 2 - Doing business in the UK

y Business practices in the UKo Business meetings in the UK are often structured but not too formal and begin and

end with social conversation.

o First names are used almost immediately with all colleagues. Exceptions are verysenior managers. However, you should always wait to be invited to use first

names before doing so yourself.o Business cards are an essential prop and are usually exchanged.


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o Negotiations and decisions are usually open and flexible. Your Britishcounterparts will favour a win/win approach.

British business etiquette (Do's and Don'ts)

yDO respect personal space. The British value their space and keeping an acceptabledistance is advised.

y DO remember to shake hands on first meetings. It is considered polite to do so.y DO make direct eye-contact with your British counterpart, however remember to keep it

to a minimum or it could be considered impolite or rude.

y DONT ask personal questions regarding your British counterparts background,occupation or income.

y DONT underestimate the importance of humour in all aspect of business in the UK.DONT forget that instructions are often disguised as polite requests

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