Reasons for Decline in Secondary Sector

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  • Created by: Violet99
  • Created on: 05-06-16 11:08

Cheaper Production Overseas and Globalisation

Many manufacturing companies have moved overseas to countries such as China where labour is cheaper and there are fewer rules on employment.

Globalisation has made this easier as communication netwroks and transportation are now faster and more efficient.

This has also led to the development of transnational companies such as Coca-Cola.

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Modern production methods and automation due to improvements in technologies have meant that fewer workers are needed in the secondary sector leading to large amounts of unemployment.

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Government Policies

Some governments overseas offer grants to set up secondary industry in their country to boost their economy.

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