Import and Export Markets in the United Kingdom Essay - 1

Import and Export Markets in the United Kingdom - Essay Example This research will begin with the statement that the United Kingdom produces a vast amount of products for exports and imports a wide range of electronics, food, oil, and other consumer goods. The use of higher technology manufactured goods has caused a dramatic increase in both exports and imports. However, the recent financial crisis experienced around the world has led to a decline in imports and exports. In 2009, UK imports and exports totaled to $1,256 billion, which was equivalent to 4.3 of the world trade. The financial crisis has caused a rise in exchange rates of a sterling pound, which has caused an 8.6% decrease in exports and 9.1% decrease in imports (Great Britain, 2009). Over the past ten years, the UK has been a net oil exporter, but production has been decreasing consistently over the past years. The oil industry has recorded an average decrease of 5.3% per year in exports. This has converted the UK from an oil export to an oil import land. Oil production in the regio n is less than demand, which calls for supplements through increased imports. Imports of other energy sources such as coal, electricity, and gas have increased over the past five years. In 2010, the importation of liquefied natural gas increased to account for 35% of total gas imports, while gas exports have decreased slightly over the same period. Gas has also been increasingly used for electricity supply with the amount required increasing by 47%. Changes in the financial sector affect business sentiments and investment decisions, which are linked to global trade. Data service exports at the start of 2007 were about 30 billion pounds while imports were about 33 billion pounds. Mid 2008 recorded the peak imports and exports at 40 billion and 34 billion pounds respectively. The rate of imports and exports of data services decreased consistently since 2008 reaching a low of 32 billion in imports and 29 billion in exports in mid-2009. However, an increase was recorded towards the end of 2010 with imports and exports reaching 41 and 35 billion respectively.