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IP Address 100.26.176.182
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The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK, or Britain, is a sovereign island countrylocated off the northwestern coast of continental Europe. The UK includes the island of Great Britain, the northeast part of the island of Ireland and many small islands. Northern Ireland is the only part of the UK with a land border, sharing it with the Republic of Ireland. Apart from this land border, the UK is surrounded by the Atlantic Ocean, the North Sea, the English Channel and the Irish Sea. The largest island, Great Britain, is linked to France by the Channel Tunnel.

The United Kingdom is a union of four constituent countries: England, Northern Ireland, Scotland and Wales. The United Kingdom is governed by a parliamentary system with its seat of government in London, the capital, and is a constitutional monarchy with Queen Elizabeth II as the head of state. The Crown Dependencies of the Channel Islands and the Isle of Man, formally possessions of the Crown, are not part of the UK but form a federacy with it. The UK has fourteen overseas territories, all remnants of the British Empire, which at its height encompassed almost a quarter of the world's land surface, making it the largest empire in history. As a result of the empire, British influence can be observed in the language, culture and legal systems of many of its former colonies such as Canada, Australia, India, and the United States. Queen Elizabeth II remains the head of the Commonwealth of Nations and head of state of each of the Commonwealth realms.

The UK is a developed country, with the fifth (nominal GDP) or sixth (PPP) largest economy in the world. It was the world's foremost power during the 19th and early 20th centuries, but the economic cost of two world wars and the decline of its empire in the latter half of the 20th century diminished its leading role in global affairs. The UK nevertheless retains strong economic, cultural, military and political influence and is a nuclear power, with the second or third (depending on method of calculation) highest defence spending in the world. It is a member state of the European Union, holds a permanent seat on the United Nations Security Council, and is a member of the G8, NATO, WTO and the Commonwealth of Nations.

Economy

The UK economy is made up (in descending order of size) of the economies of England, Scotland, Wales and Northern Ireland. The British started the Industrial Revolution, and, like most industrialising countries at the time, initially concentrated on heavy industries such as shipbuilding, coal mining, steel production, and textiles. The empire created an overseas market for British products, allowing the United Kingdom to dominate international trade in the 19th century. However, as other nations industrialised, coupled with economic decline after two world wars, the United Kingdom began to lose its competitive advantage and heavy industry declined, by degrees, throughout the 20th century. The British service sector, however, has grown substantially, and now makes up about 73% of GDP.

The service sector of the United Kingdom is dominated by financial services, especially in banking and insurance. London is the world's largest financial centre with the London Stock Exchange, the London International Financial Futures and Options Exchange, and the Lloyd's of London insurance market all based in the City of London. It has the largest concentration of foreign bank branches in the world. In the past decade, a rival financial centre in London has grown in the Docklands area, with HSBC and Barclays Bank relocating their head offices 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 firm Citigroup. The Scottish capital, Edinburgh, has one of the large financial centres of Europe.

London is a major centre for international business and commerce and is the leader of the three "command centres" for the global economy (along with New York City and Tokyo). In recent years, the UK economy has been managed in accordance with principles of market liberalisation and low taxation and regulation. Based on market exchange rates, the United Kingdom is the fifth largest economy in the world, and the second largest in Europe after Germany.

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.

The British manufacturing sector, however, has greatly diminished, relative to the economy as a whole, since World War II. It is still a significant part of the economy, but only accounted for one-sixth of national output in 2003. The British motor industry is a significant part of this sector, although it has diminished with the collapse of MG Rover and most of the industry is foreign owned. Civil and defence aircraft production is led by the United Kingdom's largest aerospace firm, BAE Systems, and the continental European firm EADS, the owner of Airbus. Rolls-Royce holds a major share of the global aerospace engines market. The chemical and pharmaceutical industry is strong in the UK, with the world's second and sixth largest pharmaceutical firms (GlaxoSmithKline and AstraZeneca, respectively) being based in the UK.

The creative industries accounted for 7.3% GVA in 2004 and grew at an average of 5% per annum between 1997 and 2004.

The United Kingdom's agriculture sector accounts for only 0.9% of the country's GDP.

The UK has a small coal reserve along with significant natural gas, and oil reserves.

Government involvement throughout the economy is exercised by the Chancellor of the Exchequer (currently Alistair Darling) who heads HM Treasury, but the Prime Minister (currently The Rt Hon Gordon Brown MP), is First Lord of the Treasury; the Chancellor of the Exchequer is the Second Lord of the Treasury. However since 1997, the Bank of England, headed by the Governor of the Bank of England, has control of interest rates and other monetary policy.

As of 2007, United Kingdom's government debt rose to 43.3% of GDP.

The currency of the UK is the pound sterling, represented by the symbol £. The Bank of England is the central bank, responsible for issuing currency. Banks in Scotland and Northern Ireland retain the right to issue their own notes, subject to retaining enough Bank of England notes in reserve to cover the issue. The UK chose not to join the euro at the currency's launch, and the British Prime Minister, The Rt Hon Gordon Brown MP, has ruled out membership for the foreseeable future, saying that the decision not to join had been right for Britain and for Europe. The government of former Prime Minister Tony Blair had pledged to hold a public referendum for deciding membership should "five economic tests" be met. In 2005, more than half (55%) of the UK were against adopting the currency, while 30% were in favour.

Source: Wikipedia, the free encyclopedia.
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