The UK Economy » The UK in the Wider World

The UK is connected to the whole world

The UK is a small island nation, but it has links with almost every country on Earth. A link is any connection that moves goods, money, people, ideas or information between places. These links bring money and jobs to the UK. They also mean that events far away, such as a recession in another country, can affect people here.

AQA wants you to know four kinds of link: trade, culture, transport and electronic communication. Then you need to know the UK's economic and political links through the European Union and the Commonwealth.

Key terms:

• Link: a connection between places that moves goods, money, people or information.
• Cultural links: shared language, ideas, sport, music, food and ways of life that connect people in different countries.
• Electronic communication: sending information by electronic means, such as the internet, email, phone calls and video calls.

Links through trade

The UK buys and sells goods and services all over the world. The UK is a trading nation, and trade is one of its strongest links with other countries.

• The UK exports goods such as cars, machinery and medicines. It also exports services such as banking, insurance and law, which is a major strength of the UK economy.
• The UK imports food, cars, machinery and fuel. Many of the foods in a UK supermarket come from abroad.
• Taken together, the countries of the European Union are the UK's biggest trading partner. The USA is the UK's biggest single trading partner.

Trade is a two-way link. It brings in goods that people want, and it earns money from selling abroad.

Links through culture

Cultural links also help the economy. Visitors come to the UK for its history, music and sport, and they spend money while they are here.

Links through transport

Transport moves people and goods between the UK and other countries.

• Air: Heathrow is one of the busiest international airports in the world. Flights carry passengers and high-value goods quickly.
• Sea: most goods, by weight, travel by ship through UK ports. Ferries link the UK with Ireland and mainland Europe.
• Rail: the Channel Tunnel opened in 1994. Eurostar passenger trains and freight trains use it to link the UK with France and the rest of Europe.

For how transport is being improved inside the UK, see the lesson on UK transport and the north-south divide.

Links through electronic communication

Information now travels around the world in seconds. Cables on the sea bed carry most international internet traffic, and the UK is connected to the rest of the world by many of them.

• Businesses use email and video calls to work with customers and suppliers in other countries.
• Banks and other financial firms move money between countries electronically.
• People use social media to keep in touch with friends and family abroad.

London's time zone is a help. The working day overlaps with Asia in the morning and with North America in the afternoon, so it suits global business.

Economic and political links: the European Union

Economic links involve trade, money and jobs. Political links involve governments working together, agreeing rules and sharing decisions.

Key terms:

• European Union (EU): a group of European countries that work together on trade and other matters. It currently has 27 members.
• Single market: an area in which goods, services, people and money can move between member countries freely, with no taxes on goods crossing borders.
• Brexit: the UK leaving the European Union.

Since leaving, the UK is outside the EU single market. Goods moving between the UK and the EU now face customs checks and paperwork, and EU citizens no longer have an automatic right to live and work in the UK. The UK is now free to make its own trade deals with other countries, for example with Australia and New Zealand.

People disagree about Brexit. Supporters wanted the UK to make its own laws and trade deals. Opponents were worried about the extra costs of trading with its closest and largest trading partner. The EU is still a very important economic link for the UK, because it is so close and so big.

Economic and political links: the Commonwealth

The Commonwealth is a voluntary group of 56 countries, and most of them were once part of the British Empire. Around 2.5 billion people live in Commonwealth countries. Members include India, Canada, Australia, Nigeria and Jamaica.

Key term:

• Commonwealth: a voluntary association of 56 countries, most with a past link to the UK, that work together on trade, education and shared values such as democracy.

The Commonwealth also has strong people links. Many people in the UK have family from Commonwealth countries, which helps explain the cultural links above.

Exam-style question

(a) Give two ways in which the UK is linked to other countries by electronic communication. [2 marks]

(b) Explain how the Commonwealth links the UK to other countries. [4 marks]