6 Analyse the disadvantages of deindustrialization. [6]

[Humzah Zafar]

[KN]Unemployment may increase
[AN]As factories close people lose their jobs which leads to increase in unemployment
[AN+]This will decrease standard of living for the unemployed

[KN]Lack of production for manufacturing products
[AN]Customer demands are not met
[AN+]Decrease in total revenue

[Sarah Shahzad]

(Kn) decrease in employment (an) when deindustrialization occurs manufacturing sector declines therefore, lots of people loose their jobs (an+) hence this decrease’s standard of living.

(Kn) Decrease in GDP (an) when deindustrialization occurs it may go from producing high value products or providing high value services to lower quality products and prices (an+) hence this decreases total output and GDP.

[Farzan Siddiqui]

[KN] increase in unemployment.
[AN] A decline in the industry would make people lose their jobs.
[AN+] This would lead towards less economy growth of the country.
[KN] Productivity would fall.
[AN] A decline in secondary industry would make the production fall.
[AN+] This would leads towards less supply into the business.

[Soha Hussain]

Q6 Analyse the disadvantages of deindustrialization. [6]

[KN]A rise in unemployment
[AN]many factories and manufacturing firms close down due to deindustrialization, resulting in a fall in employment
[AN+]Disparitiess arise along with inequalities b/w incomes

[KN]a rise in costs
[AN]as Capital-intensive methods are now out of trend(replaced by labor-intensive methods) and unemployment is on the rise, firms hire more, increasing employment but at the cost od high wages now
[AN+]therefore prices rise, leading to inflation [most probably wage-price spiral (cost-push inflation)]

[Sir Afzal Shad]

[KN] Lower customer satisfaction
{AN} Due to the capital shifting from capital-intensive towards labour-intensive methods there is a high chance that the product that is made by the labour has some defect in them
[AN+] Thus this leads to a lower quality good being produced and dissatisfaction among the customer further leading to a loss of customer loyalty as well

{KN} High cost
{AN} Because of the labour-intensive method being used more and more people would be likely to get employed by the firm and so now the firm has to hire more people and so increasing their labour cost
{AN+} Thus due to higher production costs, the business cannot maintain the quality leading to a loss of brand image.

Both AN needs to be justified since deindustrialization isn't about shifting focus from the capital intensive method to labour intensive methods.

[Sir Afzal Shad]

[KN] lower employment rates
[AN] people working in manufacturng industries would lose their job and thus stable income asw
[AN+] this leads to worse standards of living

[KN] it would cause a lack of manufactured goods being produced
[AN] this doesnt meet customer demands and higher chances of problems
[AN+] which ultimately decreases customer loyalty and sales of the company

2nd AN, needs to focus on increased import costs for the country /customers.

[Sir Afzal Shad]

[KN] Chances of errors
[AN] machines work continuously in the same way as they are instructed but humans sometimes get tired and so throw tantrums which may cause mistakes leading to loss of customer satisfaction.
[AN+] thus this will reduce productive efficiency of the business which can result in deteriorating the quality of output hence questioning the business growth.

[KN] High cost for the business
[AN] Firstly hiring labor will bring factors like their salaries and additional wages [ depending on their performance] can result in an increase in costs specially if they do not perform up to the mark but demand higher wages, bonuses etc.
[AN+] Thus, businesses may increase the prices which can lead to cost push inflation in the economy and may put off a large customer base.

Please upgrade the answers with business terminologies, we are not the economists!!!

[Abbas17]

[KN] lower employment rates
[AN] people working in manufacturng industries would lose their job and thus stable income asw
[AN+] this leads to worse standards of living

[KN] it would cause a lack of manufactured goods being produced
[AN] this doesnt meet customer demands and higher chances of problems
[AN+] which ultimately decreases customer loyalty and sales of the company

[Hussain Asghar]

[KN]Unemployment may increase
[AN]As factories close people lose their jobs which leads to increase in unemployment
[AN+]This will decrease standard of living for the unemployed

[KN]Lack of production for manufacturing products
[AN]Customer demands are not met
[AN+]Decrease in total revenue