Globalization often leads core countries to aging infrastructure and a decline in secondary sector employment. What is this phenomenon called?

• A. Deindustrialization
• B. Globalization
• C. Urbanization
• D. Privatization

Answer: (A)

Deindustrialization refers to the long-term decline of a country’s manufacturing sector, with fewer factory jobs, plant closures, and a shrinking share of output from industry. Globalization amplifies this by allowing production to move to lower-cost regions, so factories in higher-cost areas shut down and jobs disappear in the secondary sector. As manufacturing contracts, investment in related infrastructure also drops, leading to aging facilities and networks that aren’t being modernized at the same pace. The other terms describe broader processes (globalization), population shifts to cities (urbanization), or changes in ownership (privatization) and don’t specifically capture the decline of manufacturing and the associated aging infrastructure.