Foreign relations and armed forces

The United Kingdom is a permanent member of the United Nations Security Council, a member of the G8, NATO, OECD, WTO, Commonwealth of Nations, Council of Europe, and a member state of the European Union. The UK's most notable alliance is its "special relationship" with the United States. Apart from the US and Europe, Britain's close allies include Commonwealth nations and others such as Japan. Britain's global presence and influence is further amplified through its trading relations and its armed forces, which maintain approximately eighty military installations and other deployments around the globe.

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. In recent years, the UK economy has been managed in accordance with principles of market liberalization, low taxation and regulation. Since 1997, the Bank of England's Monetary Policy Committee, headed by the Governor of the Bank of England, has been responsible for setting interest rates at the level necessary to achieve the overall inflation target for the economy that is set by the Chancellor each year. The Scottish Government, subject to the approval of the Scottish Parliament, has the power to vary the basic rate of income tax payable in Scotland by plus or minus 3 pence in the pound, though this power has not yet been exercised.

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.

When assessing the tests, Gordon Brown concluded that while the decision was close, the United Kingdom should not yet join the Euro. In particular, he cited fluctuations in house prices as a barrier to immediate entry. Public opinion polls have shown that a majority of Britons have been opposed to joining the single currency for some considerable time and this position has now hardened further. The main opposition party, the Conservative party, are opposed to membership.

On 23 January 2009, Government figures from the Office for National Statistics showed that the UK was officially in recession for the first time since 1991. It entered a recession in the final quarter of 2008, accompanied by rising unemployment which increased from 5.2% in May 2008 to 7.6% in May 2009. The unemployment rate among 18 to 24-year-olds has risen from 11.9% to 17.3%.

The poverty line in the UK is commonly defined as being 60% of the median household income. In 2007-2008, 13.5 million people, or 22% of the population, lived below this line. This is a higher level of relative poverty than all but four other EU members. In the same year, 4.0 million children, 31% of the total, lived in households below the poverty line, after housing costs were taken into account.

Text 5

CROSS-CULTURAL MANAGEMENT, LANGUAGE & COMMUNICATION (UK)

"The manager who knows only his or her own country is doomed to become obsolete. Most organizations can no longer afford to employ culturally myopic managers."

Philip R. Harris & Robert Moran, Managing Cultural Differences

In the global marketplace, knowledge and skills not only mean power, it can also mean survival. Understanding the need for cultural awareness and sensitivity is just the ante to get into the game of global business. How well you play depends upon your level of cultural savvy. It is estimated that more than half of all international joint ventures fail within two or three years. The reason most often given is cultural myopia and lack of cultural competency – not the lack of technical or professional expertise. What is effective in one culture may be ineffective, or even inappropriate, in other cultures. In today’s global marketplace, being culturally savvy is no longer just “nice to have” but a key ingredient in building and maintaining a competitive global advantage. The “one size fits all approach” is not effective.

How to communicate in Great Britain?

The British are brought up to be restrained, courteous, polite and unassuming. They will be vague and hint at what they really mean: “I don’t mind if I do” means “Yes, please”. It is all understatement and subtlety. They are terrified of appearing to be “forward”. The main thing to remember is that the British do NOT quite say what they actually mean! E.g: “That may be a possibility for us” usually means “Yes, it sounds great, but I need to go away and think about it”

In business, everything will take time and cannot be hurried along. But just because British businessmen and women seem reserved and slow to make decisions, this does not mean that they lack commitment or motivation. Be patient, listen very carefully, and you will get a decision in the end. Meanwhile, just enjoy a nice cup of tea!

When greeting someone shake hands and maintain eye contact, which is a sign of respect and interest. A common greeting is “How do you do?” Respond with “How do you do?” Avoid answering with “good”. Acceptable responses are “not bad, and you?”, “OK thanks”. But if you don’t know someone you greet stick to “How do you do?” Avoid other forms of contact such as two-handed shakes, hugging and backslapping. The weather is always good for small talk as is the traffic.

How should I address people I meet? Start formally; John Smith would be Mr. Smith. Take your cue from them, if they refer to you by your first name (sometimes called Christian name in Britain, don’t be offended they don’t realise it might not be your religion) then that is your cue to use theirs. However do not change it. If they call themselves David they mean David not Dave. Social norms have been established over the years to make it easier for people to share the same space and it is important to observe them. Privacy is regarded as important; population density has not risen to the level of some countries where privacy is no longer possible in some areas. In Britain personal space is cherished and respect of other people’s space is important. This includes being a noisy neighbour. If you are coming from a more spacious country encourage your children to speak quietly, observe what others do in public.

Although a relatively small country, it still takes a lifetime to explore fully. If you go on your own, the locals are used to tourists, and will be eager to help. People are generally very patient if you don’t speak the language well, however be careful of local dialects that are very hard to understand.

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