Becoming of Great Britain
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industry and commerce. At the same time service industries have been assuming ever-increasing importance and now account for around two-thirds of output and employment. There has been a steady rise in the share of output and employment - now around 80 and 75 per cent respectively - accounted for by private-sector enterprises as privatisation of the economy has progressed. , the world's fifth largest trading nation, belongs to the European Union (EU), the biggest established trade grouping in the world. Structure of trade and industry'modernization' of business and industry happened later in Britain than it did in most other European countries. It was not until the 1960s that large corporations started to dominate and that a 'management class', trained at business school, began to emerge. Even after that time. many companies still preferred to recruit their managers from people who had 'worked their way up' through the company ranks and/or who were personally known to the directors. Only in the 1980s did graduate business qualifications become the norm for newly-hired managers. industry performed poorly during the decades following the Second World War (some people blamed this on the above characteristics). In contrast, British agriculture was very successful. In this industry, large scale organization (i.e. big farms) had been more common in Britain than in other European countries for quite a long time.in all European countries, the economic system in Britain is a mixture of private and public enterprise. Exactly how much of the country's economy is controlled by the state has fluctuated a great deal in the last fifty years and has been the subject of continual political debate. From 1945 until 1980 the general trend was for the state to have more and more control. Various industries became nationalized (in other words, owned by the government), especially those concerned with the production and distribution of energy. So too did the various forms of transport and communication services (as well, of course, as the provision of education, social welfare and health care). By 1980, 'pure' capitalism probably formed a smaller part of the economy than in any other country in western Europe. 1980 the trend started going in the other direction. A major part of the philosophy of the Conservative government of the 1980s was to let 'market forces' rule (which meant restricting the freedom of business as little as possible) and to turn state-owned companies into companies owned by individuals (who became shareholders).This approach was a major part of the thinking of Thatcherism (Margaret Thatcher was Prime Minister at that time). Between 1980 and 1994 a large number of companies were privatized (or 'denationalized'). That is, they were sold off by the government. By 1988 there were more shareholders in the country than there were members of unions. In addition, local government authorities were encouraged to 'contract out' their responsibility for services to commercial organizations. privatization of services which western people now regard as essential has necessitated the creation of various public 'watchdog' organizations with regulatory powers over the industries which they monitor. For example, Offtel monitors the activities of the privatized telephone industry, and OffWat monitors the privatized water companies. decline of the unionsthe 1980s the British government passed several laws to restrict the power of the unions. One of these abolished the 'closed shop' (arrangement which employers made with unions to hire only people who belonged to a union). Another made strikes illegal unless a postal vote of all union members had been conducted. In 1984 there was a long miners' strike. The National Union of Miners refused to follow the new regulations. Its leader, Arthur Scargill, became a symbol (depending on your point of view) of either all the worst lunacies of unionism or the brave fight of the working classes against the rise of Thatcherism. Previous miners' strikes in the twentieth century had been mostly successful. But this one was not (the miners dad not achieve their aims); a sign of the decline in union power. Industry is Organisedsome sectors a small number of large companies and their subsidiaries are responsible for a substantial proportion of total production, notably in the vehicle, aerospace and transport equipment industries. About 250 British industrial companies each have an annual turnover of more than ?500 million. The annual turnover of the biggest company, British Petroleum (BP), makes it the 11th largest industrial grouping in the world and the second largest in Europe. Five British firms are among the top 20 European Union (EU) companies in terms of capital employed. accounted for 22 per cent of gross domestic product (GDP) in 1993 and for about the same percentage of employment. About 82 per cent of visible exports consisted of manufactured or semi-manufactured goods. Virtually all manufacturing is carried out by private-sector businesses. Total capital investment in manufacturing was ?12,165 million in 1993, comprising ?10,146 million in plant and machinery, ?1,253 million in new building work and ?766 million in vehicles. construction industry contributed 5 per cent of GDP and employment about 1.2 million people in 1993, 4 per cent of the total number of employees. Total domestic fixed capital investment in construction was ?812 million. in Action's chemical industry is the third largest in Europe. The nation's fourth biggest manufacturing industry, it provides direct employment for 303,000 people. Around a half of its output is exported, making it Britain's greatest single export earner; exports in 1993 were worth ?17,300 million. major chemical companies in Britain are multinationals; several are subsidiaries of overseas companies and others are specialist manufacturers of pharmaceuticals, such as Glaxo and Wellcome. Imperial Chemical Industries (ICI) is the sixth largest chemical company in the world, with a range of 8,000 products. In 1993 ICI was demerged into two companies to form 'new' ICI, built around industrial chemicals, paints, materials and explosives, and a separate company, Zeneca, comprising ICI's pharmaceuticals, agrochemicals and seeds, and specialities business. large proportion of world R & D in agrochemicals is conducted in Britain. Notable British discoveries include diquat and paraquat herbicides, pyrethroid insectisides, systemic fungicides and aphicides, genetically-engineered microbial pesticides and methods of encouraging natural parasites to eradicate common pests.British pharmaceuticals industry is one of the biggest in the world. It is the fifth largest manufacturer and fourth largest exporter of medicines. Scientific excellence underpins the success of the pharmaceuticals industry: British firms spend around ?1,500 million a year in the search for new technologies, new therapies and new ways to fight disease. In 1992 a quarter of the 20 most prescribed medicine in the world had been discovered by scientists in Britain. industry is made up of about 360 companies of all sizes. A small number of very big firms dominate production - the six largest are Glaxo, Zeneca, Wellcome, SmithKline Beecham, Boots and Fisons. The largest 21 account for 70 per cent of production and employment. Smaller firms spend less on R & D and tend to concentrate on producing generic prescription medicines and non-prescription medicines with expired patents. industry manufactures the whole range of medicines - human and veterinary medicines, medical dressings and dental materials. In the last ten years or so, the largest growth has been in medicines that act on the respiratory system, followed by cardiovascular, muscular and skeletal, anti-infectives and alimentary tract remedies. Over-the-counter medicines sold most often are cough, cold and sore throat medicines, analgesics, vitamins and gastro-intestinal remedies. by the industry include semi-synthetics and treatments for asthma, coronary heart disease and certain cancers. British researchers are also making breakthroughs in treatments for AIDS, malaria and hepatitis. Biotechnology and a growing understanding of the biology of cells are bringing new medical opportunities. As genes in the human body are gradually sequenced, scientists are beginning to discover the molecular basis of diseases, opening the way to new treatments. Three major research areas in which Britain leads are drug design, biotechnology and gene therapy. Engineeringof mechanical machinery represented 13 per cent of total visible exports in 1993. Output includes pressure vessels, heat exchangers and storage tanks for chemical and oil-refining plant, steam-raising boilers (including those for power stations), nuclear reactions, water and sewage treatment plant, and fabricated steelwork for bridges, buildings and industrial installations. is among the world's major producers of tractors, which make up over three-quarters of total output of agricultural equipment. Sales of the tractor industry were valued at ?1,100 million in 1993. Massey Ferguson and Ford are major producers of tractors. Technical innovations include computer-controlled tractors, an ultra-efficient pesticide sprayer and combined mower/conditioners that reduce drying time for grass. is the world's eighth largest producer of machine tools with total sales of nearly ?900 million in 1993. British manufacturers have made technological advances in probes, sensors, co-ordinate measuring devices, laser melting and the installation of flexible manufacturing systems. Computer numerical-controlled machines account for an increasing proportion of output. The 600 Group is the biggest British machine tool company. sales of textile machinery are to export markets. British innovations include computerised colour matching and weave simulation, friction spinning, high-speed computer-contr