Exit from a Declining Industry Homework Help

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Learn the Reasons Behind Exit from a Declining Industry

First of all we need to know what a declining industry is. The industry which is having a negative growth rate or the growth rate it is having is not at par with the economic growth, is termed as a declining industry. Every industry goes through different stages; decline is the last part in the stages of an industry. More about declining industries can be learnt by visiting exit from a declining industry homework help.

Causes of decline of an industry

There can be various reasons that cause an industry to decline that can be learnt by checking out exit from a declining industry assignment help. Few of them are as follows –

  • The demand of the products or services being sold by the industry might keep getting lost among the consumers. If the consumer’s need decreases then it is bound to cause decline.
  • There can be a natural resource being depleted that could be a requirement for the functioning of the industry.
  • Substitutes of the goods and services being sold by the industry might be getting replaced by some other substitute which can pull the consumer’s demand.

Why exiting a declining industry is a wise decision?

  • When a firm starts losing its sale in the market, the first thing that it does is to chuck out its employees to lessen the cost to the company. This in turn creates unemployment. Thus it is better to exit an industry once it has declined rather than creating unemployment. More on how declining industries affect unemployment can be learnt by visiting exit from a declining industry homework help.
  • At times certain industries are more in a particular area, thus decline of that industry can result in low income and low employment in that specific area. So, it is again better to exit that industry and make space for a new one that will employ more people.
  • Workers who have been working in a particular industry after losing jobs might find it difficult to work in some other industry as they are skilled in different sector. Thus it is better to exit an industry as it declines so that the workers get enough time to search for other jobs. Getting more information on such effects can be obtained by visiting exit from a declining assignment help.
  • Theories have proved that a free market provides more opportunities for new industries to come up whereas a declining industry blocks the market. So it is always a positive decision to exit a declining industry.

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