Differentiate between de-industrialisation and re-industrialisation.

De-industrialisation

Re-industrialisation

It is the term given to the decline in manufacturing industries. It is resulted from:

It is the term used to the development given to the growth of some sectors of new industries in places and areas where classical industries have declined. Its characteristics are:

(i) Prices of products being too high due to low labour productivity, high labour cost and old machines.

(i) The growth of new industries of high technology which produced very advanced products with high inputs.

(ii) Highly qualified people preferred jobs in tertiary sector for the high wages.

(ii) Micro electronics, computers, audio tape recorders, tele-communication and television receivers are the examples of high technology industries.

(iii) High interest rate on capital invested.

(iii) High tech industries generally employ high skilled labour.

(iv) New types of machines replace labour in most manufacturing industries.

(iv) The new high-tech firms are located in metropolitan cities.