Question

Assess the factors that contributed to the development of large-scale industries all over the world.

Answer 1

The factors contributing to the decline of traditional large-scale industries:

1. Technological advancement: Automation and improved efficiency have transformed the industrial landscape, making manual labour less necessary. This has particularly impacted labour-intensive sectors like textiles, where automation has replaced many traditional roles.
2. Globalization: The opening of markets and increased competition from foreign companies, often with lower production costs, have posed significant challenges to domestic industries. The steel industry's struggle against cheaper imports is a prominent example of this phenomenon.
3. Changing consumer preferences: Consumer demand for more innovative and readily available products has shifted away from traditional goods. This shift can be seen in the declining demand for handmade textiles, which are often perceived as costlier and less accessible compared to machine-made alternatives.
4. Environmental regulations: Increasing environmental awareness has necessitated cleaner production methods, adding to production costs for traditional industries. Compliance with stringent environmental standards has further impacted their competitiveness.
5. Infrastructural bottlenecks: Inadequate infrastructure, particularly in terms of transportation, power, and water supply, has hampered the growth of traditional industries. This has resulted in disruptions to production processes, as seen in instances of power cuts affecting manufacturing units.
6. Demographic changes: Urbanization and rural-to-urban migration have led to labor shortages in Rural areas where many traditional industries are located. Higher urban wages and changing lifestyles have made it challenging for these industries to sustain their operations.