17 Explain one positive and one negative impact of de-industrialisation.

[Sir Afzal Shad]

17 Explain one positive and one negative impact of de-industrialisation. [8]
Hint: Positive: Growth in higher-skilled jobs > Example: More jobs in finance and IT.
Hint: Negative: Structural unemployment > Example: Factory workers lose jobs and may struggle to find new ones.

Possible Structure - 8 Marker
[KN] >> [APP] >> [AN] >> [AN+]
[KN] >> [APP] >> [AN] >> [AN+]

How to Attempt 8 Marks Questions in A Level Business (9609)

[shamaim shakeel]

Positive impact
[KN]: One positive impact of de-industrialisation is the growth of higher-skilled service jobs.
[APP]: For example, in developed countries like the UK, jobs in finance, IT, and healthcare have increased as factories declined.
[AN]: These jobs often pay better and give workers more training opportunities.
[AN+]: Over time this raises living standards, creates knowledge-based economies, and makes countries more competitive globally.

Negative impact
[KN]: A negative impact of de-industrialisation is structural unemployment.
[APP]: For example, factory workers in places like Detroit lost jobs when car plants closed and found it hard to get new work.
[AN]: Many of these workers do not have the skills needed for service sector jobs, so they may remain unemployed for long periods.
[AN+]: This can cause poverty, regional decline, and higher government spending on welfare benefits.

Overall, de-industrialisation can bring opportunities through modern industries but also creates challenges for workers and areas dependent on traditional manufacturing.

[Muaz Aamir]

KN: De-industrialisation can bring benefits and problems.
AP: For example, people may leave factory jobs for service work, but areas with old factories can struggle.
AN: Positively, service jobs can be higher paid, increase incomes, and modernise the economy negatively, it causes job losses, lowers incomes locally, and increases regional inequality.

[Shaliza khawaja]

Deindustrilization can reduse entironmental damage for example if companies of steel or coal shut down, whch are a major source of air and water pollution, this would affect publics health but also reduce government spending on healthcare, in the long run when a country is clean it becomes more attractive to tourist and investors, growing the tourism and property sector.
however deindustrilization can cause locan community to struggle as they would lose jobs for example when shipbuilding factoryshuts down , people lose ther job, this would reduce tax revenue overall for the government, making it had to provide goods and service to the communities educations in the long run it would them suffer from lowever education levels and higher crime rate .

[Hajra]

Positive impact
K: De-industrialisation can encourage growth in the tertiary sector, which often provides higher-skilled jobs.
App: For example, in developed countries like the UK, many workers moved into finance, education, and IT services.
An: This can raise wages, improve living standards, and make the economy more competitive in high-value industries.

Negative impact
K: However, de-industrialisation also leads to job losses in traditional manufacturing industries.
App: For instance, factory closures in regions such as northern England caused unemployment and declining local economies.
An: This can increase regional inequality, reduce government tax revenues, and cause long-term social problems such as poverty.

[Tahoor Yousaf]

Q.Sir which structure of comparison would look better to the examiner?
ANS A: [KN] A positive impact of de-industrialisation is that economies shift towards the tertiary sector, creating more high-skilled and better-paid jobs in areas such as finance, IT, and healthcare. [APP] This can raise living standards. [APP] However, a negative impact is rising unemployment in manufacturing regions, as factory closures leave many low-skilled workers jobless. This can increase poverty and regional inequality within a country.

OR
ANS B: [KN] A positive impact of de-industrialisation is growth of the tertiary sector, which creates jobs in services such as finance and education.[APP] This can raise incomes and improve living standards. [AN] A negative impact is unemployment in manufacturing regions when factories close, leaving many low-skilled workers without jobs. This can cause regional decline and social problems.

[Abdullah Altaf]

[DEF] De-industrialization is when manufacturing firms closes and moves to service sector businesses.
Positive Impact
[KN] De-industrialization can lead to the creation of more job opportunities in the service sector, which often requires higher skills.
[APP] For instance, as manufacturing jobs decline, there's an increase in demand for professionals in fields like finance, technology, and healthcare, leading to improved living standards for those with the necessary skills.
[AN] This shift can result in higher wages, increased economic activity, and a more competitive economy focused on innovation and knowledge-based industries.
[AN+] Furthermore, the incentive to earn will encourage skilled labor immigration, increasing the population and attracting multinational investment, thus boosting foreign investment.

Negative Impact
[KN] Reducing manufacturing business in the country.
[APP] Since the country would now have to import more finished goods, it will result in a negative balance of trade as more foreign exchange would be spent.
[AN] This can lead to economic instability, currency devaluation, and increased inflation.
[AN+] Furthermore, it can also lead to job losses in related industries such as transportation and logistics, as well as a decrease in overall economic growth.

[Abdullah Baig]

Positive Impact
(KN): One positive impact of de-industrialisation is the growth of higher skilled jobs in the tertiary sector.
(APP): For example as factories close down more opportunities are created in services like finance and IT.These jobs often pay higher wages which raises living standards for those who are employed in them and increases disposable income in the economy
(AN): As a result consumer spending rises which boosts demand for other goods and services.
(AN+): In the long run this can help the economy become more knowledge based and competitive globally

Negative Impact
(KN): One negative impact of deindustrialisation is structural unemployment
(APP): For example when factories shut down workers lose their jobs.Many of these workers may not have the skills needed for service sector jobs which makes it difficult for them to find new employment leading to long term unemployment in affected regions
(AN): This results in lower incomes and reduced consumer spending in those areas.
(AN+): In addition the government may have to spend more on welfare and retraining programmes which increases pressure on public finances

[Fatima ibtehaj]

[KN]It can lead towards growth of tertiary sector and on the other hand it may lead towards job losses.
[APP]Growth in the tertiary sector such as banking, education etc may get better paid jobs whereas workers working in declining industries may lose their jobs.
[AN]Growth in the tertiary sector can lead towards higher skilled labour hence a rise in output and efficiency whereas job losses can lead towards poverty and economic down fall.

[Abdul Hadi]

KN: A positive point is that it will allow growth of higher paid and experienced labour in the tertiary industry. while the negative point is that the workers from declining industries suffer in finding jobs.
APP: For Example, a shift in the uk will allow the skilled labour to get job in higher positions in IT and Health care while the unskilled labour or workers from declining industries will have to work in lower positions.
AN: THis can increase incomes while it might also produce longterm unemployment.

[Abdullah Mohsin]

[KN] De-industrialisation reduces factory jobs but also allows the growth of service industries.
[APP] For example, while workers in manufacturing may lose employment and face falling incomes, the expansion of tertiary activities such as finance, tourism, and IT creates new opportunities, often with higher wages and better working conditions.
[AN] Therefore, although de-industrialisation can harm traditional industrial regions through unemployment and decline, it can also drive long-term economic transformation by encouraging the development of higher-value service sectors.

[Abdur Rehman khan]

Positive impact
[KN] De-industrialisation can encourage growth in higher-skilled jobs in the tertiary sector.
[APP] For example, There are more finance and IT sectors jobs expanded rapidly as manufacturing declined.
[AN] This means more employment opportunities for skilled workers which can raise incomes boosting overall economic growth.
[AN+] This means the country develops more service and high-skill industries and labour, which can increase long-term growth.

Negative impact
[KN] De-industrialisation can also cause structural unemployment as large number of factory workers can lose their jobs.
[APP] For example, steel workers in the US struggled to find new employment when factories close down.
[AN] This means workers may remain unemployed leading to lower household incomes reducing demand in the local economy.
[AN+] Over time, whole communities can decline, with higher poverty.

[Subhan Zafar]

{KN}Higher value-added services can boost GDP and living standards.
{APP}For instance, Singapore shifted from low-value manufacturing to high-value services such as banking and logistics, becoming one of the world’s wealthiest nations.
{AN}services like finance and IT generate more profit per worker than basic manufacturing, GDP per capita rises. This allows governments to collect more tax revenue and invest in healthcare, education, and infrastructure, raising overall living standards.
{KN}eduction in exports of manufactured goods, worsening trade balance.
{APP}For example, the decline of the UK’s steel and shipbuilding industries reduced its ability to export manufactured goods overseas.
{AN}With fewer manufactured exports, the country may import more goods than it sells abroad, creating a trade deficit. This weakens the currency, increases dependence on imports, and can harm overall economic stability.

[areeshasaber]

[kn] A positive impact is environmental improvement as industrial pollution decreases. [app] For example, in countries like UK, theres less pollution as many switched to tertiary.
[an+] this improves the standard of living, cleaner environment and economy boost.
[kn] on the other hand a negative impact is displacement of workers and communities tied to manufacturing.
[app] For example, USA, the car manufacturers lost a lot of employees.
[an+] this led to industries collapsing, unemployment and poverty.

[Naveen fatima]

•Positive Impact
[KN] One positive impact of de-industrialisation is that it allows the service sector to expand.
[APP]For example, when factories close, more people move into jobs like IT, banking, education, or tourism.
[AN] These roles often pay higher wages than factory work. They also raise the skills and education level of the workforce. In addition, they are less exposed to cheap imports, which makes the economy more stable.
[AN+]Over time, this shift helps the country develop into a knowledge-based economy. It also improves competitiveness in global markets.
•Negative Impact
[KN]A negative impact of de-industrialisation is rising unemployment and social problems.
[APP] For instance, when car or steel factories shut down, many workers lose their jobs and struggle to find new ones.
[AN]This can increase poverty in old industrial towns. It lowers family living standards. It may also lead to issues such as crime and poor health.
[AN+] In the long run, entire regions may decline as investment leaves. Young people may also migrate away, making the situation worse.