Service Economy Flashcards
1
Q
De-industrialisation
A
refers to the loss of jobs in the manufacturing sector. Service jobs weren’t enough so unemployment rose.
Bc of:
•Mechanisation: most firms can produce their goods more cheaply by using machines rather than people
•Competition from abroad- mainly Taiwan, China and S. Korea
•Reduced demand for traditional products
2
Q
decentralisation
A
Inner city areas contained many of the old types of workplace most likely to be closed- old plants with the oldest production techniques, lowest productivity and most unionised workforce.
Inner cities lacked suitable land for the expansion of existing companies
New investment then went to the edge of cities or rural areas
3
Q
Why is it increasing?
A
- Population growth
- Financial services needed to support manufacturing industries
- As we become more technologically sophisticated, need a larger range of specialised services to run them
- Also becoming wealthier and demanding more leisure and retail services
