United Kingdom

London has one of the three "command centres" of the global economy behind which two cities?

The UK service sector makes up around 79 per cent of GDP. London is one of the three "command centres" of the global economy (alongside New York City and Tokyo), it is the world's largest financial centre alongside New York, and it has the largest city GDP in Europe. 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 and London has the most international visitors of any city in the world. The creative industries accounted for 7 per cent GVA in 2005 and grew at an average of 6 per cent per annum between 1997 and 2005.


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  • After the defeat of France at the end of the Revolutionary and Napoleonic Wars (1792–1815), the United Kingdom emerged as the principal naval and imperial power of the 19th century (with London the largest city in the world from about 1830). Unchallenged at sea, British dominance was later described as Pax Britannica ("British Peace"), a period of relative peace among the Great Powers (1815–1914) during which the British Empire became the global hegemon and adopted the role of global policeman. By the time of the Great Exhibition of 1851, Britain was described as the "workshop of the world". The British Empire was expanded to include India, large parts of Africa and many other territories throughout the world. Alongside the formal control it exerted over its own colonies, British dominance of much of world trade meant that it effectively controlled the economies of many regions, such as Asia and Latin America. Domestically, political attitudes favoured free trade and laissez-faire policies and a gradual widening of the voting franchise. During the century, the population increased at a dramatic rate, accompanied by rapid urbanisation, causing significant social and economic stresses. To seek new markets and sources of raw materials, the Conservative Party under Disraeli launched a period of imperialist expansion in Egypt, South Africa, and elsewhere. Canada, Australia, and New Zealand became self-governing dominions. After the turn of the century, Britain's industrial dominance was challenged by Germany and the United States. Social reform and home rule for Ireland were important domestic issues after 1900. The Labour Party emerged from an alliance of trade unions and small socialist groups in 1900, and suffragettes campaigned from before 1914 for women's right to vote.

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  • The fourteen British Overseas Territories are remnants of the British Empire: they are Anguilla; Bermuda; the British Antarctic Territory; the British Indian Ocean Territory; the British Virgin Islands; the Cayman Islands; the Falkland Islands; Gibraltar; Montserrat; Saint Helena, Ascension and Tristan da Cunha; the Turks and Caicos Islands; the Pitcairn Islands; South Georgia and the South Sandwich Islands; and Akrotiri and Dhekelia on the island of Cyprus. British claims in Antarctica have limited international recognition. Collectively Britain's overseas territories encompass an approximate land area of 480,000 square nautical miles (640,000 sq mi; 1,600,000 km2), with a total population of approximately 250,000. A 1999 UK government white paper stated that: "[The] Overseas Territories are British for as long as they wish to remain British. Britain has willingly granted independence where it has been requested; and we will continue to do so where this is an option." Self-determination is also enshrined in the constitutions of several overseas territories and three have specifically voted to remain under British sovereignty (Bermuda in 1995, Gibraltar in 2002 and the Falkland Islands in 2013).

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  • The rise of Irish nationalism, and disputes within Ireland over the terms of Irish Home Rule, led eventually to the partition of the island in 1921. The Irish Free State became independent, initially with Dominion status in 1922, and unambiguously independent in 1931. Northern Ireland remained part of the United Kingdom. The 1928 Act widened suffrage by giving women electoral equality with men. A wave of strikes in the mid-1920s culminated in the General Strike of 1926. Britain had still not recovered from the effects of the war when the Great Depression (1929–1932) occurred. This led to considerable unemployment and hardship in the old industrial areas, as well as political and social unrest in the 1930s, with rising membership in communist and socialist parties. A coalition government was formed in 1931.

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  • Nonetheless, "Britain was a very wealthy country, formidable in arms, ruthless in pursuit of its interests and sitting at the heart of a global production system." After Nazi Germany invaded Poland, Britain entered the Second World War by declaring war on Germany in 1939. Winston Churchill became prime minister and head of a coalition government in 1940. Despite the defeat of its European allies in the first year of the war, Britain and its Empire continued the fight alone against Germany. Churchill engaged industry, scientists and engineers to advise and support the government and the military in the prosecution of the war effort. He formed a Special Relationship with the United States, and won their agreement to a Europe first grand strategy for the Allies. In 1940, the Royal Air Force defeated the German Luftwaffe in a struggle for control of the skies in the Battle of Britain. Urban areas suffered heavy bombing during the Blitz. There were eventual hard-fought victories in the Battle of the Atlantic, the North Africa campaign and the Italian campaign. British forces played an important role in the Normandy landings of 1944 and the liberation of Europe, achieved with its allies the United States, the Soviet Union and other Allied countries. The British Army led the Burma campaign against Japan and the British Pacific Fleet fought Japan at sea. British scientists contributed to the Manhattan Project which led to the surrender of Japan.

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