IGCSE, A Level Business Student Forum

[KN]The growth of the tertiary sector has led to de-industrialization in developed countries.
[APP]For example jobs have increased in call centers and there is less demand for workers in secondary sector.
[AN] Tertiary sector is a more skill based sector compared to primary and secondary,therefore it's growth will lead to skilled labour in the country which will lead to increase in productivity leading to increase in GDP resulting in economic growth.

KN: De-industrialisation often happens when firms move production abroad to cut labour costs.
APP: for e.g Apple manufactures its screen in China because of cheaper labour and fewer taxes.
AN: This leads to a higher profit margin for producers because they do not have to spend as much in production but gain as much profit. However the secondary sector in the developed country suffers due to less production.

KN: One reason for de-industrialisation in developed countries is increased competition from abroad.

APP: For example, many UK factories have closed because goods can be produced more cheaply in countries in Asia.

AN: This leads to a decline in manufacturing jobs in developed countries and a shift towards the tertiary sector, where more employment opportunities are available in services like banking and finance.

KN: One of the reasons of deindustrialization is because labour on the secondary sector is too expensive.
APP: In regions like UK, they demand higher salaries.
AN: Due to this the businesses switch to tertiary sector where through proper branding they can attract more customers, which will increase their sales, improving their brand image, enabling them to charge higher prices, increasing their income, and therefore, encouraging more people to switch to the tertiary sector, causing deindustrialization.

[KN]:One reason for de-industrialisation in developed countries is the rise of cheaper manufacturing in developing nations.[APP];For example, many clothing and electronics companies in the USA and UK have moved their factories to countries like China or Bangladesh, where labour costs are lower.[AN+]:This leads to a decline in secondary sector jobs in developed countries, as businesses shift production overseas to remain competitive, increasing reliance on the tertiary sector instead

KN: Deindustrialisation happens when manufacturing in a country declines over time. One main reason is that production moves to countries with cheap labour.
APP: E.g many clothing and electronics factories have shifted from the UK or USA to countries like China or Bangladesh.
AN: This lowers costs for businesses but reduces factory jobs in developed countries leading to a smaller secondary sector.

KN:De-industrialisation is the decline in the importance of the secondary sector often due to changes in global or domestic conditions.
APP:For example many developed countries like the UK have faced strong competition from abroad. Goods can often be produced more cheaply in countries such as China or India leading to a fall in manufacturing output in the UK.
AN :This means factories in developed countries may close because they cannot compete with lower-cost producers and as a result employment shifts towards the growing tertiary sector such as retail and banking.