Deindustrialization
• Deindustrialization refers to the systematic, widespread withdrawal of investment in basic aspect of productivity, such as factories.
• Giant corporations move its factories to more profitable place such as other part of the country, or out of the country (offshoring).
• This means the change of the targets of investment, and need for labor decreases along with automate production by technological advance.
• Deindustrialization often involves relocation, but it often takes a form of corporate restructuring as well, when companies seek to reduce costs in the face of growing worldwide competition.
• A corporation may reduce or abandon less productive divisions. Wages and salaries may be frozen.
• Increasing automation also means the end of some work. These are also called as downsizing.