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3) What is de-industrialization? Why might it be a bad thing? What policies might stop it or slow it down? Relate your answers to UK recent experience particularly in relation to FDI.

The origin of the concept of de-industrialization is uncertain but what is clear is that in the 1970s it became a central issue in contemporary debates about Britain's comparative international economic performance. (F. Blackaby 1979, De-industrialisation, London,In Alford, Refresh 25, Autumn 1997).
Throughout the past twenty-five years, employment in industrialized as contribute to the total employment has collapsed significantly in the world’s most highly developed markets, an observable fact commonly referred to as “deindustrialization”

In broad terms it claimed that insufficient resources were being devoted to those sectors that produced ‘marketable output’ – mainly manufacturing, mining and construction – on which the economy was based. However, During the 1970s a de-industrialization thesis was advanced under the polemical banner of ‘Too Few Producers’ (F. Blackaby 1979 De-industrialisation London)
What is more, de-industrialization is a process of social and economic change caused by the removal or reduction of industrial activity in a country or region, especially heavy industry or manufacturing industry.

The trend, particularly evident in the United States and Europe, is also apparent in Japan and has been observed most recently in the Four Tiger economies of East Asia (Hong Kong, China, Korea, Singapore, and Taiwan Province of China). Not surprisingly, deindustrialization has caused considerable concern in the affected economies and has given rise to a vigorous debate about its causes and likely implications. (http://www.imf.org/external/pubs/ft/issues10/)

The manufacturing sector’s share of UK GDP has fallen sharply over the last 25 years, from 27% in 1979 to 14% in 2004.Manufacturing employment   has also halved over the same period, to just 3.5 million....