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Explain the growth of any one developed economy you have studied under one or more of the following headings: Financial services - Leaving Cert Geography - Question B - 2010
Question B
Explain the growth of any one developed economy you have studied under one or more of the following headings: Financial services. Tourism. Industrial decline.
Worked Solution & Example Answer:Explain the growth of any one developed economy you have studied under one or more of the following headings: Financial services - Leaving Cert Geography - Question B - 2010
Step 1
Financial services
Answer
In the developed economy of the United Kingdom, the growth of the financial services sector has been substantial over the past few decades. London is a global financial hub, offering a wide range of financial products and services, including banking, insurance, and investment advice.
The deregulation in the 1980s, known as the 'Big Bang,' played a pivotal role in promoting competition and innovation within the sector. This led to an influx of foreign investment and the establishment of numerous financial institutions, making the UK an attractive destination for global finance.
Moreover, advancements in technology and the rise of fintech companies have further contributed to the growth of financial services, enhancing efficiency and expanding customer access to services.
Step 2
Tourism
Answer
Tourism is another critical area contributing to the growth of the developed economy. In places like France, the tourism industry plays an essential role, making it one of the most visited countries in the world.
Cultural heritage sites, such as the Eiffel Tower and the Louvre Museum, attract millions of visitors annually. The government invests significantly in tourism infrastructure, enhancing transport services, accommodations, and entertainment options. This not only creates employment opportunities but also improves the overall economy by generating revenue through visitor spending.
The rise of digital marketing and social media has also increased visibility for tourist destinations, encouraging more travelers to visit.
Step 3
Industrial decline
Answer
While some sectors grow, others may experience industrial decline. For example, the decline of traditional manufacturing industries in the United States has been notable. Factors such as globalization, competition from overseas markets, and technological advancements have contributed to job losses in manufacturing.
This shift requires economies to adapt by transitioning workers to emerging industries, such as technology and renewable energy, to mitigate the adverse effects of industrial decline. Policymakers often focus on retraining programs and investment in education to support this transition, ensuring a sustainable economic future.